Section 1: Use this data to fill in the form below. Use straight line depreciation if necessary. (22 points)
a) Your business has $8,350 in the bank and $500 on hand.
b) Exactly one year ago, you bought a building that cost $72,000. It has a useful life of 20 years and a 20 year mortgage
payable to the previous owner. You made a down payment of $12,000. Your payments are $750/month. This breaks
down into a $250/month principal payment and a $500/month interest payment.
c) On the same day, you purchased a delivery truck for $6,000 in an all cash deal. It has a useful life of 5 years.
d) Two years ago you started this business by investing $20,000
e) You charge your gas for the truck and pay the bill quarterly. You spend $150/month for gas. You paid the last gas bill 2
months ago.
f) Your earnings for the first two years combined totaled $1,900
g) You sell automotive tools. You have $11,000 worth in the truck. You have $7,500 worth of tools in the building. In
addition, you have $2,500 worth of half assembled engine analyzers. These will take another $500 worth of labor to
make ready for sale.
h) When you started this business, two years ago, you bought a business insurance policy that costs $2,500/year. You paid
for 4 years in advance.
1) Stillman's Garage owes you $750 for tools purchased.
j) Hoag's Automotive owes you $400 for tools purchased.
k) Your pre-tax profit averages $7,500 per quarter. Your tax due for this year is $5,000.
I need to fill in this balance sheet
