BALANCE SHEET

Up & Running Corporation

ASSETS
CURRENT ASSETS
Cash in bank
Accounts receivable
Inventory
Prepaid expenses (Eg: Rent)
Other current assets
TOTAL CURRENT ASSETS

31st January
$44,750.00
$1,500.00
$72,700.00
$1,400.00
$95,000.00
$215,350.00

28th February
$303,350.00
$289,500.00
$172,700.00
$0.00
$94,800.00
$860,350.00

FIXED ASSETS
Total PP&E
Furniture and fixtures
Leasehold improvements
Other fixed assets
(LESS accumulated depreciation on all fixed assets)
TOTAL FIXED ASSETS (NET OF DEPRECIATION)

31st January
$458,350.00
$0.00
$0.00
$0.00
$0.00
$458,350.00

28th February
$458,350.00
$0.00
$0.00
$0.00
$0.00
$458,350.00

OTHER ASSETS
Intangibles
Deposits
Goodwill
Other
TOTAL OTHER ASSETS

31st January
$28,000.00
$0.00
$0.00
$0.00
$28,000.00

28th February
$27,550.00
$0.00
$0.00
$0.00
$27,550.00

TOTAL ASSETS

$701,700.00

$1,346,250.00

CURRENT LIABILITIES
Accounts payable
Deferred Revenue
Taxes payable
Notes, short-term (due within 12 months)
Current part, long-term debt
Other current liabilities
TOTAL CURRENT LIABILITIES

31st January
$14,200.00
$4,500.00
$0.00
$2,650.00
$0.00
$0.00
$21,350.00

28th February
$443,914.00
$0.00
$0.00
$2,650.00
$0.00
$0.00
$446,564.00

LONG-TERM DEBT
Mortgages & Loans
Notes payable to stockholders
Other long-term debt
TOTAL LONG-TERM DEBT

31st January
$50,350.00
$0.00
$0.00
$50,350.00

28th February
$50,350.00
$0.00
$0.00
$50,350.00

TOTAL LIABILITIES

$71,700.00

$496,914.00

31st January
$450,000.00
$180,000.00
$0.00
$630,000.00

28th February
$450,000.00
$180,000.00
$0.00
$630,000.00

LIABILITIES AND EQUITY

ASSETS AND LIABILITIES

OWNERS' EQUITY
Issued Capital
Additional Paid in Capital
Retained earnings - current
TOTAL OWNERS' EQUITY

TOTAL LIABILITIES AND EQUITY

$701,700.00

$1,126,914.00

Balanced

Unbalanced

Emily Chen
Section 1

T-Accounts for Up and Running

Amounts in $
A

Cash
(6) ########

A/P
2,400 (1)

(3)

235,000 (5)

(7)

4,500 ######## (2)

710,000

710,000 (7)
EB

EB

258,600

RE

RE

Sales

(4)

950,000 ######## (3)

124,114 (13)

(5)

235,000

458,114

(8)

1,400

(9)

2,500

(10)

450

(4)

950,000

EB

950,000

(5)

235,000

EB

235,000

(8)

1,400

EB

1,400

Mortgage Payable
0

53,000

(11)

100

(12)

265

53,000

(13)

124,114

EB

EB

COGS

SG&A
186,171

Interest Payable
A/R

(3) ########

1,500 (2)

######## (6)
EB

EB

######## (3)
EB ########

265 (12)
0

Rent exp

265

288,000
Prepaid expense

(8)

Depreciation

1,400

EB

(1,400)

(9)

2,500

EB

2,500

Inventory
(2) ########
EB

Amortization

950,000 (4)

100,000

(10)

450

EB

450

Insurance Coverage
(1)

2,400

EB

2,300

Insurance exp

100 (11)

(11)

100

EB

100

Intangible assets

Interest exp

450 (10)
EB

(450)

(12)

265

EB

265

(13)

124,114

EB

124,114

Accum Dep

Taxes

2,500 (9)
EB

(2,500)
PP&E
0 (9)

EB

644,550

458,114

186,171

RE

186,171

Up and Running Inc. Transactions

(1) Pays
Issues2-year
15,000
insurance
shares of
premium
$10 parof
value
$2400
common
for fire stock
& liabfor
coverage
$210,000
beginning
in cash Feb 1
Cash

F&L Coverage
2,400

2,400

(2) Acquires $1,050,000 merchandise; $1500 from suppliers to whom U&R returned defective merchandise during Jan
Had not yet received refund for $1500
Remaining purchases acquired on account
A/R

Inventory
1,500

A/P

########

########

(3) Sells $1,500,000 merchandise to customers; $4,500 to customers who had advanced U&R cash during Jan
Remaining sales made on account
RE

A/R

########

########

A/P

Sales

4,500

########

(4) COGS $950,000 for merchandise sold in (3)

Inventory

RE

950,000

950,000

COGS
950,000

(5) Pays cash for SG&A of $235,000

Cash

RE

235,000

235,000

SG&A
235,000

(6) Collects $1,206,000 from customers for sales previously made on account
Cash

A/R

########

########

(7) Pays $710,000 to suppliers of merchandise for purchases previously made on account
Cash

A/P

710,000

710,000

(8) Recognizes rent expense for Feb

Prepaid expense
1,400

RE
1,400

Rent exp
1,400

(9) Recognizes depreciation of $2,500 for Feb

Use Accum Dep account
Accum Dep

RE

2,500

2,500

Depreciation
2,500

(10) Recognizes $450 amortization on patent

No Accum Amort account for patents
Intangible assets
450

RE
450

Amortization
450

(11) Recognizes appropriate amount of insurance expense for Feb

F&L Insurance
100

RE
100

Insurance exp
100

Up and Running Inc. Transactions

(12) Recognizes interest expense on mortgage payable used to acquire warehouse
Loan is 20-year, 6% mortgage with principal of $53,000
Principal and interest payments made annually on Jan 31
Principal is settled in 20 equal installments
Cash

RE
159

159

Interest exp
159

(13) Recognizes income tax expense for Feb with 40% tax rate
Income taxes for Feb are payable by April 15
A/P

RE
124,114

124,114

Taxes
124,114