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STOCHOSINC.      

STATEMENT of FINANCIALPOISTION                            

June 30, 2018

ASSETS                                                    LIABILITIES

Cash                              $222,000            Accounts Payable               $150,000

AccountsRec.                   58,000            Mortgage Payable                 500,000

Inventory                            4,000          

Supplies                               6,000             TOTAL LIABILITIES                   $650,000                          

Land                                 210,000

Buildings     $900,000                               STOCKHOLDER EQUITY

    Acc. Depr. <200,000>700,000        

Equipment       260,000                            Common Stock $5 Par      $500,000

    Acc. Depr    <60,000>200,000             Excess                                $100,000

                                                                    RetainedEarnings              $150,000

                                                                    TOTALEQUITY                           $750,000           

TOTAL ASSETS     $1,400,000           TOTAL LIAB. &EQUITY        $1,400,000

July 1 Sold 220,000 shares of common stock for $6,600,000.

July 3 Purchased on account $100,000 of inventory for resale tocustomers.

July 5   Purchased a 2-year insurance policy for$4,800 in cash. Effective date is July 1.

July 7   Paid cash for $100,000 in inventory acquiredJuly 3.

July 10 Sales revenue generated was $400,000. Cash received thisdate was $75,000 the

            balance would be received later in the year.

July 30 Paid $40,000 in wages for the month of July.

   

July 30 Acquired $800,000 of equipment. Useful life is 10 years.Signed a note (12%)

            for the full amount.

July 31 Paid $20,000 July monthly mortgage payment. The rate ofinterest on this

            mortgage is 7 per cent.

Aug. 1 Stochos declared a dividend of $1 per share. Shareholderswho owned shares on

          August 15 would be paid the dividends in October.

Aug. 9 Stochos borrowed $180,000, and signed a note for thisamount at 11 per cent.

Aug. 15 Customers returned $80,000 of items they acquired onJuly 10.

Aug. 18 Stochos sold 100,000 shares for $80 per share.

Aug. 30 Paid August wages – the $40,000 was paid in cash.

Aug. 31 Paid the August mortgage payment of $20,000.

Aug. 30 Paid $30,000 on the equipment note entered into on July30 of this year.

Aug. 30 Received full amount due from the July 10 sale.

Sept. 30 Supply inventory valued at $200.

Sept. 30 Sales on account to customers amounted to $135,000.Stochos Inc. received

               $33,000 in cash on this date from customers.

Sept. 30 Wages were accrued this day in the amount of $40,000.Stochos Inc. informed

              their employee that their checks would be available October5^th.

OTHER INFORMATION

1. Tax rate is 20%.

2. Building has a 20-year useful life from date of purchase.

3. All equipment has a useful life of ten years.

4. Inventory at the end of the quarter was $10,000.

PREPARE THE FOLLOWING:

1. INCOME STATEMENT

2. STATEMENT OF RETAINED EARNINGS

3. STATEMENT OF FINANCIAL POSTION [AKA] BALANCESHEET