Based on the information below create an income statement, balance sheet, and cash flow statement. On...

Based on the information below create an income statement, balance sheet, and cash flow statement.

On January 2, 2003, Alexander, together with a number of relatives and friends, established Chemalite, Inc.; 500,000 shares were issued, of which Alexander received 125,000 in exchange for his patent, and the remainder were sold to the other investors at $1 per share. During the period January 2, 2003, through June 30, 2003, Chemalite, Inc., made the following expenditures:

January 15—Paid $7,500 in legal fees, charter costs, and printing expenses associated with the incorporation of the company.
June 15—Spent $62,500 building the machinery that would be used to produce the first commercial models of the Chemalite.
June 24—Purchased $75,000 worth of plastics and chemicals for use in the production of commercial Chemalites. ‘

Between January 2 and June 30, the company’s bank balance had fallen from $375,000 to $230,000.

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ekkarill92 answered 1 year ago

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