Accounting and tax question in Real Estate

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Accounting in Business

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Today’s world is one of information — its preparation, communication, analysis, and use. Accounting is at the core of this information age. Knowledge of accounting gives us career opportunities and the insight to take advantage of them.

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Importance of Accounting

For example, the sale by Apple of an iPhone.

Keep a chronological log of transactions.

Prepare reports such as financial statements.

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Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities.

Identifying business activities requires that we select relevant transactions and events.

Recording business activities requires that we keep a chronological log of transactions and events measured in dollars.

Communicating business activities includes preparing accounting reports such as financial statements, which we analyze and interpret.

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Users of Financial Information

Accounting is called the language of business because all organizations set up an accounting information system to communicate data to help people make better decisions. Accounting serves many users who can be divided into two groups: external users and internal users.

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External users of accounting information are not directly involved in running the organization. They include shareholders (investors), lenders, directors, customers, suppliers, regulators, lawyers, brokers, and the press. External users have limited access to an organization’s information.

Internal users of accounting information are those directly involved in managing and operating an organization. They use the information to help improve the efficiency and effectiveness of an organization. Managerial accounting is the area of accounting that serves the decision-making needs of internal users.

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Generally Accepted Accounting Principles (GAAP)

Financial accounting is governed by concepts and rules known as generally accepted accounting principles (GAAP). GAAP aims to make information relevant, reliable, and comparable.

Relevant information affects decisions

of users.

Reliable information is trusted by users.

Comparable information is helpful in contrasting organizations.

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Financial accounting is governed by concepts and rules known as generally accepted accounting principles (GAAP). GAAP aims to make information relevant, reliable, and comparable. Relevant information affects decisions of users. Reliable information is trusted by users. Comparable information is helpful in contrasting organizations.

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International Standards

Differences between U.S. GAAP and IFRS are decreasing as the

FASB and IASB pursue a convergence process aimed to achieve a single set of accounting standards for global use.

International Accounting Standards Board (IASB) An independent group (consisting of individuals from many countries), issues International Financial Reporting Standards (IFRS)

International Financial Reporting Standards (IFRS)

Identify preferred accounting practices

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In today’s global economy, there is increased demand by external users for comparability in accounting reports. This demand often arises when companies wish to raise money from lenders and investors in different countries. To that end, the International Accounting Standards Board (IASB), an independent group (consisting of individuals from many countries), issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices.

Differences between U.S. GAAP and IFRS are decreasing as the FASB and IASB pursue a convergence process aimed to achieve a single set of accounting standards for global use.

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The Accounting Period

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To provide timely information, accounting systems prepare reports at regular intervals. This results in an accounting process impacted by the time period (or periodicity) assumption. The time period assumption presumes that an organization’s activities can be divided into specific time periods such as a month, a three-month quarter, a six-month interval, or a year. Most organizations use a year as their primary accounting period. Many organizations also prepare interim financial statements covering one, three, or six months of activity.

When we divide business activities into arbitrary fixed periods of time, it is often necessary to have special accounting for transactions that cross from one time period to the next.

Most of our time will be spent looking at the special adjusting process for some of these transactions.

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Accounting Cycle

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The term accounting cycle refers to the steps in preparing financial statements. It is called a cycle because the steps are repeated each reporting period. There are ten steps in the cycle which include:

1. Analyze transactions -- Analyze transactions to prepare for journalizing.

2. Journalize -- Record accounts, including debits and credits, in a journal.

3. Post -- Transfer debits and credits from the journal to the ledger.

4. Prepare unadjusted trial balance -- Summarize unadjusted ledger accounts and amounts.

5. Adjust -- Record adjustments to bring account balances up to date; journalize and post adjustments.

6. Prepare adjusted trial balance -- Summarize adjusted ledger accounts and amounts.

7. Prepare statements -- Use adjusted trial balance to prepare financial statements.

8. Close -- Journalize and post entries to close temporary accounts.

9. Prepare post-closing trial balance -- Test clerical accuracy of the closing procedures.

10. Reverse (optional step) -- Reverse certain adjustments in the next period.

Notice that we prepare the financial statements before we complete the closing process.

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Closing Agreements

Bank Statements

Purchase Orders

Checks

Source Documents

Bills from Suppliers

Description

Date

Amount

Authorization

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Source documents identify and describe transactions and events entering the accounting process. They are the sources of accounting information and can be in either hard copy or electronic form. Almost all businesses use sales orders, purchase orders, statements from suppliers, canceled checks, bank statements, shipping notices, packing slips, and the like to support the existence of a transaction. In today’s highly computerized environment, many source documents are stored digitally. Knowing how to access these digital source documents is an important part of accounting.

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Analyzing Transactions

Double-entry accounting is useful in analyzing and processing transactions. Analysis of each transaction follows these four steps.

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Transaction Analysis and the Accounting Equation

The Accounting Equation

Expanded Accounting Equation:

Net Income

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The accounting system reflects two basic aspects of a company: what it owns and what it owes. Assets are resources a company owns or controls. Examples are cash, supplies, equipment, and land, where each carries expected benefits. The claims on a company’s assets—what it owes—are separated into owner and non-owner claims. Liabilities are what a company owes its non-owners (creditors) in future payments, products, or services. Equity (also called owner’s equity or capital) refers to the claims of its owner(s). Together, liabilities and equity are the source of funds to acquire assets.

Assets are resources a company owns or controls. These resources are expected to yield future benefits. Examples are Web servers for an online services company, musical instruments for a rock band, and land for a vegetable grower. The term receivable is used to refer to an asset that promises a future inflow of resources. A company that provides a service or product on credit is said to have an account receivable from that customer.

Liabilities are creditors’ claims on assets. These claims reflect company obligations to provide assets, products or services to others. The term payable refers to a liability that promises a future outflow of resources. Examples are wages payable to workers, accounts payable to suppliers, notes payable to banks, and taxes payable to the government.

Equity is the owner’s claim on assets, and is equal to assets minus liabilities. This is the reason equity is also called net assets or residual equity.

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Transaction Analysis and the Accounting Equation

Creekside Realty engages in the following transactions:

Sells shares to investors for $10,000,000.

Borrows $15,000,000 from a bank.

Buys $20,000,000 building ($4,000,000 land and $16,000,000 building.

Pays property taxes of $400,000

Receives rent of $50,000.

Renovates the lobby in the building at a cost of $1,000,000

Record depreciation of $640,000

Demonstrate impact on accounting equation

Assets = Liabilities + Owners Equity

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Journalizing and Posting Transactions

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In the accounting process, you first analyze a transaction by looking at proper source documentation. Next, we apply the rules of double-entry accounting and record a general journal entry. The general journal is a chronological listing of the transactions. At the end of the accounting period, we post the information from the general journal to the proper general ledger account. The general ledger groups all transactions that impact a particular account. That is, all the transactions that increase or decrease the cash account are posted to the general ledger cash account.

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Analyzing and Posting Process

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The accounting process identifies business transactions and events, analyzes and records their effects, and summarizes and presents information in reports and financial statements. These reports and statements are used for making investing, lending, and other business decisions. The steps in the accounting process that focus on analyzing and recording transactions and events are shown on this slide.

We begin the accounting process by analyzing source documents. For example, you usually receive a receipt when you pay cash for something. Think about the last time you went to a fast food restaurant. When you received your order, you were given a receipt, a source document. If you wanted a company to reimburse you for the meal because you were traveling on company business, you must present evidence of your expenditure. This evidence takes the form of a source document, the receipt.

Once we identify a business transaction, we record it in a journal. A journal is arranged in chronological order. Transactions are recorded by date of occurrence. At the end of the accounting period, usually a month, transactions in the journal are posted to a ledger account. Posting is the systematic process of transferring information from the journal to the ledger. The ledger groups transactions by the accounts impacted. For example, we will have a ledger account for cash. All transactions that result in increases or decreases in the cash account will be posted to the cash ledger account.

Once all transactions have been posted, we prepare a trial balance. The purpose of the trial balance is to make sure that all information has been transferred properly. The trial balance is a listing of all account balances.

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Ledger and Chart of Accounts

The ledger is a collection of all accounts for an information system.

A company’s size and diversity of operations affect the number of accounts needed.

The chart of accounts is a list of all accounts and includes an identifying number for each account.

The principle of double-entry bookkeeping is that all business transactions should be recorded

in accounts & transactions should be recorded in at least two accounts as a self check

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The ledger is a collection of all accounts for an information system. A company’s size and diversity of operations affect the number of accounts needed.

A chart of accounts is a listing of all accounts in the ledger and each account includes an identifying number. Notice that all assets accounts begin with an account number of one, all liabilities with two, equities with three, revenues with four, and expenses with six.

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An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

The Account and Its Analysis

The general ledger is a record containing all accounts used by the company.

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An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. The general ledger is a record containing all accounts used by the company.

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The Account and its Analysis

Owner, Capital

Owner, Withdrawals

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Recall the basic accounting equation – Assets are equal to Liabilities plus Equity. The equity section is composed of the owner’s capital account and the owner’s withdrawal account.

Asset accounts – Assets are resources owned or controlled by a company and that have expected future benefits. Most accounting systems include (at a minimum) separate accounts for the assets described, such as cash, accounts receivable, note receivable, and prepaid accounts.

Liability accounts – Liabilities are claims (by creditors) against assets, which means they are obligations to transfer assets or provide products or services to other entities. Creditors often use a balance sheet to help decide whether to loan money to a company. A loan is less risky if the borrower’s liabilities are small in comparison to assets because this means there are more resources than claims on resources.

Equity Accounts – The owner’s claim on a company’s assets is called equity or owner’s equity. Equity is the owner’s residual interest in the assets of a business after deducting liabilities.

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Land

Furniture &

Fixtures

Buildings

Cash

Straight Line Rent*

Deposits (with others)

Prepaid Expenses

Accounts Receivable

Asset Accounts

* Straight line rent could be an asset or liability depending on cash received

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Here is a listing of common asset accounts we are likely to find in all businesses. Prepaid accounts may be new to you. Think about your auto insurance. Many of us pay our auto insurance semi-annually or annually. The payment is made in advance and is referred to as a prepaid amount. Prepaid amounts will turn into expenses as they are used up.

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Accrued Liabilities

Unearned Revenue

Notes Payable

Accounts Payable

Liability Accounts

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This is a listing of common liability accounts we are likely to see in the general ledger. An unearned revenue is one in which the cash has been received but the product or service has not been delivered. If you subscribe to a magazine, you generally pay a one-year subscription in advance. For the publishing company, cash is received but nothing has been done to earn the revenue. As the magazine is delivered to you, the publishing company recognizes a portion of the money received as revenue. At the end of the year, all the revenue will be earned and the liability no longer exists.

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Equity Accounts

Revenues

Owner’s Capital

Common Stock

Expenses

Equity Accounts

Owners Withdrawals

Retained Earnings

Additional Paid in Capital

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The owner’s claim on a company’s assets is called equity. Equity is the owner’s residual interest in the assets of a business after deducting liabilities. Equity is impacted by four types of accounts:

Owner’s capital

Owner’s withdrawals

Revenues

Expenses

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The Account and its Analysis

Revenues and owner’s contributions increase equity.

Expenses and owner’s withdrawals decrease equity.

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Do you remember the expanded accounting equation we used to record transactions in Chapter 1? Remember that revenues increase the equity side of the equation and expenses decrease equity. In addition, owner’s contributions increase equity and owner’s withdrawal decrease equity.

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Debits and Credits

A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions.

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Accountants often use a T-account to represent a general ledger account. It is a quick way to analyze transactions before we enter the information in the journal. The account title is entered on the top of the T-account. The left side of a T-account is always called the debit side, and the right side is always called the credit side. This terminology comes from the time when the first double-entry system was developed. We still use the terms as a convention. The words do not have any significant meaning other than that they stand for the left and right side of a ledger. When the sum of the debits exceed the sum of the credits in a particular account, the account has a debit balance.

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Liabilities

Equity

Assets

Double-Entry System T-Accounts

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Double-entry accounting requires that for each transaction:

● At least two accounts are involved, with at least one debit and one credit.

● The total amount debited must equal the total amount credited.

● The accounting equation must not be violated.

After we decide on the terms to use for the left and right side of a ledger account, we must establish the mathematics of the double-entry system. Liabilities and equity have the opposite sign of assets. If we were to move the liabilities to the left side of the equation, it would read assets minus liabilities equal equity. As a convention of double-entry accounting we have decided that a debit, or left side, to an asset account will represent an increase in the asset account balance. Once this decision is made, all the remaining math is determined. Because liabilities and equity have the opposite sign of assets, a debit to a liability or equity account means a decrease and a credit means an increase. Instead of using the terms increase and decrease, we use the terms debit and credit. It is important to remember whether we are talking about an asset, liability, or equity account for the meaning of a debit or a credit.

Another method for working with debits and credits is to use the accounting equation as a guide. Assets are on the left hand side of the accounting equation. Therefore all increases to assets are on the debit (left) side of the T-account. Liabilities and equity accounts are on the right hand side of the accounting equation. Therefore all increases to liabilities and equity accounts are on the credit (right) side of the T-account.

It will take you a short while to become accustomed to using the terms debit and credit, but with practice you will master the concept easily.

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Double-Entry Accounting

Here is the expanded accounting equation showing the equity section.

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Here is the expanded accounting equation showing the equity section. Because revenues increase equity, a revenue account must be recorded just like the C. Taylor, Capital account. A credit is an increase in revenues and a debit is an increase in expenses. The C. Taylor, Capital and revenue accounts are both increased with a credit and decreased with a debit. Owner's Withdrawals and expenses have an opposite sign, so these accounts are increased with a debit and decreased with a credit.

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Cash Basis

Revenues are recognized when cash is received and expenses are recorded when cash is paid.

Accounting

Accrual Basis versus Cash Basis

Non-GAAP

Accrual Basis

Revenues are recognized when earned and expenses are recognized when incurred.

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The cash basis is not considered to be compliant with GAAP. While you may be on the cash basis for your transactions, almost all companies follow the accrual basis of accounting.

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Accrual Basis versus Cash Basis

Assume for example that on December 1, 2013, FastForward paid $2,400 cash for a twenty-four month business insurance policy. Using the cash basis, the entire $2,400 would be recognized as insurance expense in 2013. No insurance expense from this policy would be recognized in 2014 or 2015, periods covered by the policy.

On the accrual basis, $100 of insurance expense is recognized in 2013, $1,200 in 2014, and $1,100 in 2015. The expense is matched with the periods benefited by the insurance coverage.

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In our first transaction, on December 1, 2013, FastForward paid $2,400 cash for a twenty-four month business insurance policy.

On the cash basis, the entire $2,400 would be recognized as an expense in 2013 even though the policy provides protection for 2013, 2014, and part of 2015. Let’s look at how this type of transaction is handled in an accrual basis accounting system.

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Accrual Basis versus Cash Basis

Expense Accruals

Entry often to payables:

Accrued interest

accrue additional expense from last payment through year end

Dr. Interest expense (equity)

Cr. Interest payable (liability)

Accrued wages

accrue additional wages from last pay date through year end

Dr. Wages expense (equity)

Cr. Wages payable (liability)

Income Accruals

Entry often to receivables:

Accrued rent

Recognize income for rental where the time period passed but no payment was received

Dr. Rent receivable (asset)

Cr. Rental income (equity)

Accrued sales

Recognize income for rental where the time period passed but no payment was received

Dr. Accounts receivable (asset)

Cr. Sales revenue (equity)

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An adjusting entry is recorded to bring an asset or liability account balance to its proper amount.

Framework for Adjustments

Cash was received before revenue was earned

Creates deferred revenue LIABILITY

Cash paid before expense was accrued

Creates prepaid ASSET

Revenue was earned but no cash was received

Creates ASSET

Expense needs to be accrued but nothing was paid yet

Creates accrued LIABILITY

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Adjustments are necessary for transactions and events that extend over more than one period. It is helpful to group adjustments by the timing of cash receipts or cash payments in relation to the recognition of the related revenues or expenses. Here is a framework for adjusting the books of the company.

There are two broad categories of adjustments. The first is when we pay or receive cash before the expense or revenue is recognized. This category includes prepaid or deferred expenses (including depreciation) and unearned or deferred revenues.

The second major category of adjustments is when cash is paid or received after the expense or revenue is recognized. These are some very common adjustments. The category includes accrued expenses and accrued revenues.

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An adjusting entry is recorded to bring an asset or liability account balance to its proper amount.

Framework for Adjustments

Accrued Expenses

Prepaid Expenses

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We have delivered the

product to our customer,

so I think we should record

the revenue earned.

Recognizing Revenues and Expenses

The revenue recognition principle states that we recognize revenue when the product or service is delivered to our customer.

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With accrual basis, we recognize revenue when the product or service is delivered to our customer.

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Recognizing Lease Income

Revenue from a lease includes base rents, operating expense recoveries, property tax recoveries, and percentage rent.

GAAP requires that rent from operating leases is recognized over the lease term on a straight-line basis

Tax requires rent to be recognized when earned and due from the tenant, unless there is significant prepayment or deferral in the terms (Section 467 lease). However, tax also requires that rents received in advance are taxable in the period received.

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With accrual basis, we recognize revenue when the product or service is delivered to our customer.

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Recognizing Revenues and Expenses

The expense recognition (or matching) principle aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses. This matching of expenses with the revenue benefits is a major part of the adjusting process.

Summary

of Expenses

Rent

Gasoline

Advertising

Salaries

Utilities

and . . . .

$1,000

500

2,000

3,000

450

. . . .

Now that we have

recognized the revenue,

let’s see what expenses

we incurred to

generate that revenue.

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The matching principle aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses. This matching of expenses with the revenue benefits is a major part of the adjusting process.

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Principles and Assumptions of Accounting

General principles are the basic assumptions, concepts, and guidelines for preparing financial statements. General principles stem from long-used accounting practices.

Specific principles are detailed rules used in reporting business transactions and events. Specific principles arise more often from the rulings of authoritative groups.

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Accounting principles (and assumptions) are of two types. General principles are the basic assumptions, concepts, and guidelines for preparing financial statements. Specific principles are detailed rules used in reporting business transactions and events. General principles stem from long-used accounting practices. Specific principles arise more often from the rulings of authoritative groups.

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Accounting Principles

Cost Principle

Accounting information is based on actual cost. Actual cost is considered objective.

Matching Principle

A company must record its expenses incurred to generate the revenue reported.

Full Disclosure Principle

A company is required to report the details behind financial statements that would impact users’ decisions.

Revenue Recognition Principle

Recognize revenue when it is earned.

Proceeds need not be in cash.

Measure revenue by cash received plus cash value of items received.

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The measurement principle, also called the cost principle, usually means that accounting information is based on actual cost (with a potential for subsequent adjustments to market). Cost is measured on a cash or equal-to-cash basis. This means if cash is given for a service, its cost is measured as the amount of cash paid.

Three concepts are important to the revenue recognition principle.

Revenue is recognized when earned. The earnings process is normally complete when services are performed or a seller transfers ownership of products to the buyer.

Proceeds from selling products and services need not be in cash. A common noncash proceed received by a seller is a customer’s promise to pay at a future date, called credit sales.

Revenue is measured by the cash received plus the cash value of any other items received.

The expense recognition principle, also called the matching principle, prescribes that a company record the expenses it incurred to generate the revenue reported. The principles of matching and revenue recognition are key to modern accounting.

The full disclosure principle states that a company is required to report the details behind the financial statements if the details so disclosed would impact the users’ decision-making process. Most of the details are reported in the notes to the financial statements.

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Accounting Assumptions

Monetary Unit Assumption

Express transactions and events in monetary, or money, units.

Business Entity Assumption

A business is accounted for separately from other business entities, including its owner.

Time Period Assumption

Presumes that the life of a company can be divided into time periods, such as months and years.

Now

Future

Going-Concern Assumption

Reflects assumption that the business will continue operating instead of being closed or sold.

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Now we will look at four fundamental assumptions of accounting. The going-concern assumption states that, in the absence of information to the contrary, the business entity is assumed to continue operations into the foreseeable future. The monetary unit assumption tells us that we will only record accounting information that can be expressed in monetary units, usually dollars in the United States. The business entity assumption tells us that we must separate out the transaction of individual owners of a business from those of the business. Finally, the time period assumption presumes that the life of a company can be divided into time periods such as months and years, and that useful reports can be prepared for those periods.

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Example

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Transaction Analysis

Transaction 1

On December 1, Joan Taylor personally invests $1,500,000 cash in FastForward and deposits the cash in a bank account opened under the name of FastForward.

The accounts involved are:

(1) Cash (asset)

(2) Owner Capital (equity)

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Let’s look at the identification and recording of business transactions for FastForward, a consulting business owned by Chas Taylor that focuses on assessing the performance of footwear and accessories. On December 1, Chas Taylor personally invests $30,000 cash in FastForward and deposits the cash in a bank account opened under the name of FastForward.

First, we have to identify the assets, liability or equity accounts involved in this transaction. We can see that the cash account will increase by $30,000 and the owner capital will increase by $30,000.

After this transaction, the cash (an asset) and the owner’s equity each equal $30,000. The source of increase in equity is the owner’s investment, which is included in the column titled C. Taylor, Capital. (Owner investments are always included under the title ‘Owner name,’ Capital.)

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Transaction Analysis

Transaction 2

FastForward uses $50,000 of its cash to place a deposit on a commercial rental building, Building A.

The accounts involved are:

(1) Cash (asset)

(2) Deposits (asset)

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In transaction number 2, FastForward uses $2,500 of its cash to buy supplies of brand name footwear for performance testing over the next few months.

This transaction is an exchange of cash, an asset, for another kind of asset, supplies. It merely changes the form of assets from cash to supplies. The decrease in cash is exactly equal to the increase in supplies. The supplies of footwear are assets because of the expected future benefits from the test results of their performance.

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Transaction Analysis

Transaction 3

FastForward purchases Building A, for $3,500,000, allocating $500,000 to Land and $3,000,000 to Building. Fastforward assumes $200,000 of tenant deposits and uses its $50,000 original deposit and borrows a mortgage of $3,000,000.

The accounts involved are:

(1) Cash (asset) (5) Security Deposits (liability)

(2) Deposits (asset) (6) Mortgage (liability)

(3) Land (asset)

(4) Building (asset)

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In transaction number 3, FastForward spends $26,000 to acquire equipment for testing footwear. This is an exchange of one asset, cash, for another asset, equipment. The equipment is an asset because of its expected future benefits from testing footwear.

This purchase changes the makeup of assets but does not change the asset total.

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Transaction Analysis

Transaction 4

Tenant G negotiates that Joan Taylor improve certain space in the building. Joan completed the build out at a cost of $250,000, but Joan has not yet paid the cash to the contractor.

The accounts involved are:

(1) Building Improvemnts (asset)

(2) Accounts Payable (liability)

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In transaction number 4, FastForward decides more supplies of footwear and accessories are needed. These additional supplies total $7,100, but as we see from the accounting equation, FastForward has only $1,500 in cash. Taylor arranges to purchase them on credit from CalTech Supply Company.

FastForward acquires supplies in exchange for a promise to pay for them later. This purchase increases assets by $7,100 in supplies, and liabilities (called accounts payable to CalTech Supply) increase by the same amount.

This purchase changes the makeup of assets but does not change the asset total.

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Transaction Analysis

Transaction 5

In connection with the acquisition of Building A, FastForward incurred due diligence fees. Upon receipt of the bill, the amount was immediately paid. The fees for diligence was determined to be $7,000 related to the Land acquisition and $43,000 related to the Building acquisition.

The accounts involved are:

(1) Cash (asset)

(2) Land (asset)

(3) Building (asset)

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In transaction number 5, FastForward provides consulting services to a powerwalking club and immediately collects $4,200 cash.

The accounting equation reflects this increase in cash of $4,200 and in equity of $4,200. This increase in equity is identified in the far right column under Revenues because the cash received is earned by providing consulting services. It earns net income only if its revenues are greater than its expenses incurred in earning them.

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Transaction Analysis

Transaction 6

FastForward signed a 5 year lease from April 1, 2018 to March 31, 2023. After three months of free rent, the lease requires $20,000/mo. over the remaining 57 months. Straight-line rental amount of $19,000 for each month (and the 9-month total) of $171,000 is being recorded at year end.

The accounts involved are:

(1) Cash (asset)

(2) Revenue (equity)

Note that the cash received posted below was not correct in this transaction. Actual cash was $120,000. This amount will be corrected in an adjusting entry later.

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In transaction 6 and 7, FastForward pays $1,000 rent to the landlord of the building where its facilities are located. Paying this amount allows FastForward to occupy the space for the month of December. In addition, the company pays the biweekly $700 salary of the company’s only employee.

The costs of both rent and salary are expenses, as opposed to assets, because their benefits are used in December (they have no future benefits after December). These transactions also use up an asset (cash). By definition, increases in expenses yield decreases in equity. This can be seen in the accounting equation chart because expenses are subtracted in the equity part of the equation. So, an increase in an expense account yields the subtraction of a larger number, thus decreasing equity.

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Transaction Analysis

Transaction 7

FastForward pays property taxes of $12,000 for the six months from February 1st to July 31. Also, $10,000 for the five months of property taxes due from August 1st to December 31st are recorded as owed.

The accounts involved are:

(1) Cash (asset)

(2) Accounts Payable* (liability)

(3) Expense (equity)

* This transaction could be recorded in a separate account called property taxes payable depending on the chart of accounts for the entity.

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In transaction 8, FastForward provides consulting services of $1,600 and rents its test facilities for $300 to a podiatric services center. The center is billed for the $1,900 total. This transaction results in a new asset, called accounts receivable, from this client. It also yields an increase in equity from the two revenue components that total $1,900.

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Transaction Analysis

Transaction 8

On April 1st a management fee contract was signed which requires payments of $2,000/mo. Prepayment of 2-months ($4,000) is required upon signing of the contract and continuously thereafter.

The accounts involved are:

(1) Cash (asset)

(2) Prepaid expenses (asset)

(3) Management fee expense (expense)

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In transaction 9, the podiatric center pays $1,900 to FastForward 10 days after it is billed for consulting services.

This transaction does not change the total amount of assets and does not affect liabilities or equity. It converts the receivable (an asset) to cash (another asset). It does not create new revenue. Revenue was recognized when FastForward rendered the services, not when the cash is received.

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Transaction Analysis

Transaction 9

Utilities on the property were paid in the month after it was incurred, except that both the November and December bill were paid on January of the next year. The total utilities were $3,230 of which $590 represented the amounts paid in January of the following year. Record the entire year utilities.

The accounts involved are:

(1) Cash (asset)

(2) Prepaid expenses (asset)

(3) Management fee expense (expense)

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In transaction 9, the podiatric center pays $1,900 to FastForward 10 days after it is billed for consulting services.

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Transaction Analysis

Transaction 10

Professional fees for bookkeeping and tax returns of $2,500 are incurred but not paid.

The accounts involved are:

(1) Accounts Payable (liability)

(2) Expenses (equity)

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In transaction 11, the owner of FastForward withdraws $200 cash for personal use. FastForward’s cash decreases. Chas Taylor, Withdrawals increases by $200, which by definition, yields a decrease in equity. This relationship can be seen in the accounting equation on the slide by the subtraction of the withdrawals account in the equity section. As the withdrawals account balance increases, total equity decreases.

Withdrawals (decreases in equity) are not reported as expenses because they are not part of the company’s earnings process. Since withdrawals are not company expenses, they are not used in computing net income.

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Transaction Analysis

Transaction 11

The owner of FastForward withdraws $500,000 cash for personal use.

The accounts involved are:

(1) Cash (asset)

(2) Withdrawals (equity)

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Summary of Transactions – General Ledger

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We have now completed transactions 1 through 11. This is a summary of all eleven of FastForward’s transactions during the month of December. Why don’t you add all the assets and get a total. Compare the total assets to the total of liabilities and equity. The books are still in balance after analyzing the eleven transactions.

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Recap

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Double-Entry Accounting

An account balance is the difference between the increases and decreases in an account. Notice the T-Account.

733,360

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We determined the balance in the accounts in the last chapter, but in this chapter we will look at a more comprehensive way to determine an account balance.

The cash account is an asset, so increases, or receipts, are shown on the debit, or left side, and decreases, or payments, are shown on the credit side, or right side. To determine if an account has a debit or credit balance, we total the right and left sides and place the balance on the larger side. In this example, our increases in cash amount to $36,100 and the decreases total $31,300 so the cash account has a debit, or positive balance of $4,800.

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Analyzing Transactions

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In the first transaction, the owner invests $30,000 to start a company called FastForward. From our previous work, we know that the cash account and the C. Taylor, Capital account will increase.

We record this information in the general journal with a debit, increase, to cash, and a credit, increase, to C. Taylor, Capital. Notice that the account number for the cash account is 101 and C. Taylor, Capital is 301. We are going to post the information in the journal to the general ledger. We will use T-accounts to accomplish this.

We place the $30,000 on the left, or debit, side of the cash account and on the right, or credit, side of the C. Taylor, Capital account. Our books are in balance because total assets are equal to total liabilities plus equity. Let’s move to another transaction.

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Analyzing Transactions

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In our second transaction, FastForward purchases office supplies paying $2,500 cash. We have exchanged one asset, cash, for another asset, supplies. The cash account will decrease and the supplies account will increase. Can you make the general journal entry to record this transaction?

We increase the supplies account with a debit and decrease the asset account, cash, with a credit. Let’s post the amounts.

The general ledger account for supplies increased by $2,500, so the amount is placed on the debit side of the account. The cash account, an asset, decreased by $2,500, so the amount is placed on the credit side of the general ledger account. Let’s move on to another transaction.

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Preparing the Trial Balance

Preparing a trial balance involves three steps:

List each account title and its amount (from ledger) in the trial balance. If an account has a zero balance, list it with a zero in the normal balance column (or omit it entirely).

Compute the total of debit balances and the total of credit balances.

Verify (prove) total debit balances equal total credit balances.

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Preparing a trial balance involves three steps:

List each account title and its amount (from ledger) in the trial balance. If an account has a zero balance, list it with a zero in the normal balance column (or omit it entirely).

Compute the total of debit balances and the total of credit balances.

Verify (prove) total debit balances equal total credit balances.

The total of debit balances equals the total of credit balances for the trial balance. However, equality of these two totals does not guarantee that no errors were made.

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After processing its remaining transactions for December, FastForward’s Trial Balance is prepared.

The trial balance lists all account balances in the general ledger. If the books are in balance, either the total will be zero or total debits will equal the total credits.

Two alternative approaches:

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On the trial balance, we list all the accounts in our general ledger and their related balances. The total of all our debit account balances must equal all our credit account balances. If this is not the case, we may have made an error posting the journal entry into the ledger. We cannot prepare the financial statement until the books are in balance as determined by the trial balance.

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Financial Statement Prep from Trial Balance

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Financial Statements

The four financial statements and their purposes are:

Income statement — describes a company’s revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities.

Statement of owner’s equity— explains changes in equity from net income (or loss) and from any owner investments and withdrawals over a period of time.

Balance sheet — describes a company’s financial position (types and amounts of assets, liabilities, and equity) at a point in time.

Statement of cash flows — identifies cash inflows (receipts) and cash outflows (payments) over a period of time.

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This section introduces us to how financial statements are prepared from the analysis of business transactions. The four financial statements and their purposes are:

Income statement — describes a company’s revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities.

Statement of owner’s equity— explains changes in equity from net income (or loss) and from any owner investments and withdrawals over a period of time.

Balance sheet — describes a company’s financial position (types and amounts of assets, liabilities, and equity) at a point in time.

Statement of cash flows — identifies cash inflows (receipts) and cash outflows (payments) over a period of time.

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Using a Trial Balance to Prepare Financial Statements

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As we have seen in the last chapter, after the trial balance has been prepared we begin preparing the financial statements. We always begin with the income statement because net income appears on the statement of owner's equity. After the income statement, we prepare the statement of owner's equity because the ending balance in owner's equity appears on the balance sheet. Next, we prepare the balance sheet and, finally, we prepare the statement of cash flows.

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Income Statement

Start with income statement

The income statement describes a company’s revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities.

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Here is the information for FastForward for the month ended December 31, 2013. The company had total revenues of $6,100 and total expenses of $2,630. For the month, FastForward generated $3,470 in net income. Look back at our trial balance to verify the amounts shown on the income statement.

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Statement of Owner’s Equity

Income statement result is used in Statement of Owners Equity

The statement of owner’s equity reports information about how equity changes over the reporting period.

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The beginning balance in owner's equity was zero because the company was started on December 1, 2013. We earned net income of $3,470. (This is the total carried over from the income statement.) During the month, the owner invested $30,000 bringing the subtotal of the equity to $33,470. Owner's withdrawals of $200 were paid. So the ending balance in owner's equity is $33,270. This amount will appear on the equity section of the balance sheet.

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Balance Sheet

Net income from income statement

Calculated ending owners equity used in the Balance Sheet

The balance sheet describes a company’s financial position at a point in time.

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Total assets equal $42,470. Total liabilities are $9,200 and our equity balance is $33,270, which comes from the statement of owner’s equity we just discussed. The accounting equation is in balance because assets are equal to liabilities plus equity.

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Presentation Issues

Dollar signs are not used in journals and ledgers.

Dollar signs appear in financial statements and other reports such as trial balances. The usual practice is to put dollar signs beside only the first and last numbers in a column.

When amounts are entered in the journal, ledger, or trial balance, commas are optional to indicate thousands, millions, and so forth.

Commas are always used in financial statements.

Companies commonly round amounts in reports to the nearest dollar, or even to a higher level.

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There are many common standards for formatting in accounting. Here are some standards used by most companies:

Dollar signs are not used in journals and ledgers.

Dollar signs appear in financial statements and other reports such as trial balances. The usual practice is to put dollar signs beside only the first and last numbers in a column.

When amounts are entered in the journal, ledger, or trial balance, commas are optional to indicate thousands, millions, and so forth.

Commas are always used in financial statements.

Companies commonly round amounts in reports to the nearest dollar, or even to a higher level.

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Global View

Both U.S. GAAP and IFRS prepare the same four basic financial statements. A few differences are found within each statement, but over time these differences are likely to be eliminated. Here is a typical IFRS balance sheet presentation.

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Both U.S. GAAP and IFRS require balance sheets to separate current items from noncurrent items. However, U.S. GAAP balance sheets report current items first, while IFRS balance sheets normally (but are not required to) present noncurrent items first, and equity before liabilities.

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Making Adjustments – Adjusted Trial Balance

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Searching for and Correcting Errors

If the trial balance does not balance, the error(s) must be found and corrected.

Make sure the trial balance columns are correctly added.

Make sure account balances are correctly entered from the ledger.

See if debit or credit accounts are mistakenly placed on the trial balance.

Re-compute each account balance in the ledger.

Verify that each journal entry is posted correctly.

Verify that each original journal entry has equal debits and credits.

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If the trial balance does not balance, the error(s) must be found and corrected.

Step 1: Verify that the trial balance columns are correctly added.

Step 2: Verify that account balances are accurately entered from the ledger.

Step 3: See whether a debit (or credit) balance is mistakenly listed in the trial balance as a credit (or debit).

Step 4: Re-compute each account balance in the ledger.

Step 5: Verify that each journal entry is properly posted.

Step 6: Is to verify that the original journal entry has equal debits and credits.

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An adjusting entry is recorded to bring an asset or liability account balance to its proper amount.

Framework for Adjustments

Cash was received before revenue was earned

LIABILITY

Cash was paid before expense was accrued

ASSET

Revenue was earned but no cash was received

ASSET

Expense needs to be accrued but nothing was paid yet

LIABILITY

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Here is the check

for my 24-month insurance policy.

Prepaid (Deferred) Expenses

Resources paid for prior to receiving the actual benefits.

Assuming payment was debit to prepaid expense asset and credit was to cash, this entry is made when expense should be incurred on the income statement

Assuming payment of cash was credit to cash and debit to prepaid expenses, this entry is made when the expense should be recognized on the income statement

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Let’s start with the first type of adjusting entries that we showed you on the previous screen, the payment or receipt of cash before the expense or revenue is recognized.

We will start with a prepaid expense. For all adjustments involving prepaid expenses, we increase, or debit, an expense account and reduce, or credit, an asset account. Now, let’s look at an example.

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Prepaid Expenses

Other prepaid expenses, such as Prepaid Rent, are accounted for exactly as Insurance and Supplies.

Some prepaid expenses are both paid for and fully used up within a single period. For example, a company may pay monthly rent on the first day of each month. This payment creates a prepaid expense on the first day of the month that fully expires by the end of the month. In these cases, we can record the cash paid with a debit to the expense account instead of an asset account.

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Other prepaid expenses, such as Prepaid Rent, are accounted for exactly as Insurance and Supplies. We should note that some prepaid expenses are both paid for and fully used up within a single period. For example, a company may pay monthly rent on the first day of each month. This payment creates a prepaid expense on the first day of the month that fully expires by the end of the month. In these special cases, we can record the cash paid with a debit to the expense account instead of an asset account. Now let’s look at a new type of adjusting entry.

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Unearned (Deferred) Revenues

We will apply this cash

you gave us towards your total consulting fees.

Cash received in advance of providing products or services.

Assuming receipt of cash was debit to cash and credit to unearned revenue, this entry is made when the revenue should be recognized on the income statement

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The term unearned revenues refers to cash received in advance of providing products and services. Unearned revenues, also called deferred revenues, are liabilities.

When accounting for deferred revenues, we are faced with a transaction where cash is received in advance of providing a product or service. In other words, we have received the cash, but have done nothing to earn it. In our example, we will examine accounting for the receipt of cash prior to our company rendering any services.

When we render consulting services, we will prepare an adjustment for deferred revenues (a liability). We always debit, or reduce, a liability account and credit, or increase, a revenue account. Let’s move on to our consulting example.

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We’re about one-half

done with this job and

want to be paid for our work!

Costs incurred in a period that are

both unpaid and unrecorded.

Accrued Expenses

Since no cash changes hands for accrued expenses, the original entry is made to record expenses incurred during the year. Later, cash is credited and the liability is debited

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An accrued expense is defined as a cost incurred in the current period that is both unpaid and unrecorded. When you use your credit card, often you do not record the transaction until you pay your monthly invoice; even though you have incurred the cost. Accrued expenses must be reported on the income statement of the period when incurred.

For all accrued expense adjusting entries, we debit, or increase an expense account, and credit, or increase, a liability account. Let’s look at a specific example of an accrued expense.

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Straight-Line

Depreciation

Expense

Asset Cost - Salvage Value

Useful Life

Depreciation

Depreciation is the process of allocating the cost of a plant asset over its useful life in a systematic and rational manner.

Methods prescribed by the IRS

27.5 year residential; 39 year commercial; 5 year personal; no depreciation on land

GAAP

Tax

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As we have seen, plant assets, with the exception of land, are depreciated over their useful lives. Depreciation is the process of allocating the cost of a plant asset over its useful life in a systematic and rational manner. At this point in the accounting process, we want to introduce you to a depreciation method known as straight-line depreciation. Straight-line depreciation is the most popular method used by companies. They determine the amount of annual depreciation by taking the cost of the plant assets, subtracting the estimated salvage value, and dividing that amount by the useful life of the asset. The salvage value is the amount we expect to receive for the asset when we dispose of it at the end of its useful life. In a later chapter, we will discuss other acceptable methods of depreciation. For now, let’s look at the adjusting entry to record depreciation expense.

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Depreciation

On February 1, 2018, FastForward purchased a property for $3,500,000 where $500,00 was allocated to land and $3,000,000 was allocated to building. The building has a GAAP estimated useful life of 25 years (300 months). Land is not depreciable. For tax the life is 40 years (400 months and 1st month mid-month convention).

Let’s record depreciation expense for the month and year ended December 31, 2018.

GAAP

Dec. 2018

Depreciation

Expense

$3,000,000

300 months

$10,000/month or

$110,000 – 1st yr.

Tax

Dec. 2018

Depreciation

Expense

$3,000,000

40 years

X 10.5 / 12 =

$65,625 1st yr.

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On December 1, 2013, FastForward purchased equipment for $26,000 cash. The equipment has an estimated useful life of four years or 48-months, and an estimated salvage value of $8,000 at the end of the four-year period. Can you determine the depreciation expense for the month of December, 2013?

How did you do? The numerator of the equation is $26,000 cost, less $8,000 salvage value, or $18,000. The denominator is 48 months because we are calculating depreciation for one month, so our monthly depreciation expense is $375. Now, let’s record the adjusting journal entry.

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Building

Depreciation Expense

2/1 3,000,000

12/31 110,000

Accumulated Depreciation

12/31 110,000

Depreciation

Contra asset account

Monthly GAAP adjustment

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First we record the journal entry with a debit to Depreciation Expense for $375 and a credit to Accumulated Depreciation – Equipment for the same amount. The Accumulated Depreciation account is referred to as a contra asset account. A contra account is subtracted from the related asset account. In this case, we will subtract Accumulated Depreciation from the Equipment account and report the net amount on the balance sheet.

We have posted the adjusting entry to record depreciation expense. We have also shown you the balance in the equipment account. The Depreciation Expense account will appear on our income statement for the year ended December 31, 2013. Let’s see how we will deal with the other two accounts on the balance sheet.

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Land, building and other assets (furniture & fixtures or equipment) are shown net of accumulated depreciation.

Depreciation

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The contra-account, accumulated depreciation, will be shown as a reduction in the cost of the asset, equipment. Cost of a plant asset less accumulated depreciation is known as book value. So the asset, equipment, will be shown on the balance sheet at its net amount, or book value, of $25,625. Because the contra account appears on the balance sheet it will not be closed at the end of the period. It will be carried forward to 2014 and used to accumulate the depreciation related to the equipment. Now let’s move on to the second category of adjusting entries, deferred revenues.

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Loan Payments

FastForward borrowed $3,000,000 from a bank on February 1, 2018. The note bears interest at the annual rate of 5.5% and is due to be repaid in one year. An amortization schedule shows that payments were $341,858, which was $140,008 interest and $201,850 principal reduction

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FastForward borrowed $6,000 from First National Bank on December 1, 2013. The note bears interest at the annual rate of 6% and is due to be repaid in one year. Let’s accrue interest for the month ended December 31, 2013.

In our adjusting journal entry, we will debit, or increase, interest expense and credit, or increase, interest payable for $30 ($6,000 times 6% for one month or 30/360). After the adjustment, interest expense for 2013 is accurately reported. Let’s look at the posting to the ledger accounts.

Interest Expense accrued at the end of the year is $30. The interest payable account will be eliminated when the bank is repaid the principal of $6,000 and the annual interest of $360 on December 1, 2014. Now let’s move on and look at accrued revenue.

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Straight-Line

Depreciation

Expense

Asset Cost

Useful Life

Intangible Assets

Amortization is the process of allocating the cost of a intangible capitalized asset over its useful life in a systematic and rational manner.

Useful life – for example, life of loan or lease (if intangible was related). Other intangibles (goodwill) are 15 year straight line.

GAAP

Tax

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Intangible Assets

On February 1, 2018, FastForward incurred a loan - 1% of the borrowed balance was paid as a fee at closing. The $30,000 fee is capitalized as a loan intangible asset. The loan has a 10 year period so for both GAAP and tax, the amount is amortized over the loan period of 10 years (120 months). Tax uses the same methodology.

Let’s record amortization expense for the month and year ended December 31, 2018.

GAAP

Dec. 2018

Amortization

Expense

$30,000

120 months

$250/month or

$2,750 – 1st yr.

Tax

Dec. 2018

Amortization

Expense

$30,000

120 months

$250/month or

$2,750 – 1st yr.

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Accrued Interest Expense

FastForward borrowed $3,000,000 from a bank on February 1, 2018. The note bears interest at the annual rate of 5.5% and is due to be repaid in one year. The last payment was made on December 15th – per the amortization schedule, about $16,800 accrued before the year ended December 31, 2018.

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①

②

③

④

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An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded. An adjusted trial balance is a list of accounts and balances prepared after adjusting entries have been recorded and posted to the ledger. Here we show both the unadjusted and the adjusted trial balances for FastForward at December 31, 2013. The order of accounts in the trial balance is usually set up to match the order in the chart of accounts. Several new accounts arise from the adjusting entries.

Each adjustment (see middle columns) is identified by a letter in parentheses that links it to an adjusting entry explained earlier. Each amount in the Adjusted Trial Balance columns is computed by taking that account’s amount from the Unadjusted Trial Balance columns and adding or subtracting any adjustment(s).

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Preparing Final Financial Statements

Let’s use FastForward’s adjusted trial balance to prepare the company’s financial statements.

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Once we have completed the worksheet, we can move on to the preparation of the company’s financial statements. We always begin with the income statement.

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1. Prepare the Income Statement

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You can see how we took the information directly from the worksheet and prepared the income statement for the month ended December 31, 2013. Net income reported by FastForward for the month is $3,785. We will see this amount again on the statement of Owner's Equity.

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Note: Net Income from the Income Statement carries to the Statement of Changes in Owner’s Equity.

2. Prepare the Statement of Owner’s Equity

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The statement of owner’s equity adds together the net income and the owner’s investment of $30,000. The owner’s withdrawal of $200 reduces owner’s equity to $33,585.

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3. Prepare The Balance Sheet

Top part of trial balance

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The next step in preparing the financial statements is the preparation of the Balance Sheet. After we have completed the Income Statement and the Statement of Owner’s Equity, we are ready to prepare our last financial statement, which is called the Balance Sheet. Asset and liability balances are transferred over from the adjusted trial balance to the Balance Sheet. The ending capital balance was determined on the Statement of Owner’s Equity shown. The ending balance is transferred from that statement to the Balance Sheet. The Balance Sheet proves that the fundamental accounting equation is in balance and you can see that the Total Assets of $42,745 is equivalent to the sum of the total liabilities and owner’s equity.

The final statement to be prepared is the Statement of Cash Flows. We will study this statement in detail later in the course.

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Global View

Both U.S. GAAP and IFRS include similar guidance for adjusting accounts. Although some variations exist in revenue and expense recognition.

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Both U.S. GAAP and IFRS include broad and similar guidance for adjusting accounts; however, some variations exist in revenue and expense recognition.

Review the comprehensive balance sheet of Piaggio (expressed in Euros) prepared using IFRS standards. Notice that the arrangement of accounts is different from a balance sheet prepared according the GAAP.

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Recording Closing Entries

Resets revenue, expense, and withdrawal account balances to zero at the end of the period.

Helps summarize a period’s revenues and expenses in the Income Summary account.

Identify accounts for closing.

Record and post closing entries.

Prepare post-closing trial balance.

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The closing process is an important step at the end of an accounting period after financial statements have been completed. After the formal financial statements have been prepared, we may begin the process of closing the books and getting ready for the next accounting period. Income is earned over a period of time. At the end of the time period, we start over and calculate income for the next period. The purpose of the closing process is to reset all revenue, expense, and withdrawal accounts to a zero balance at the end of the period. By doing so, we can start the next accounting period anew. We will use a temporary account called income summary to facilitate the closing process. The account will never appear on any financial statement and will have a zero balance when the closing process is complete.

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Temporary Accounts

Revenues

Income Summary

Expenses

Withdrawals

Permanent Accounts

Assets

Liabilities

Owner’s Capital

Temporary and Permanent Accounts

The closing process applies only to temporary accounts.

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All accounts that will be closed are known as temporary accounts. Temporary accounts include revenues, expenses, withdrawals, and the income summary. These accounts should all have a zero balance at the end of the period. Permanent accounts include assets, liabilities, and owner’s capital. These accounts are permanent in nature because they are carried forward from one accounting period to the next.

Remember, the closing process only applies to temporary accounts ‒ revenues, expenses, withdrawals, and the income summary.

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Let’s see how the closing process works!

Recording Closing Entries

Close Credit Balances in Revenue Accounts to Income Summary.

Close Debit Balances in Expense accounts to Income Summary.

Close Income Summary account to Owner’s Capital.

Close Withdrawals to Owner’s Capital.

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Here are the four steps we always follow in the closing process. First, we close all revenue accounts to the income summary. We move the balance in all revenue accounts from the account to the income summary. This process will cause all revenue accounts to have a zero balance. Remember that revenue accounts normally have a credit balance.

Next, we close all expense accounts to the income summary. This will zero out all our expense accounts. Expense accounts normally have a debit balance.

Next, the income summary will show revenues and expenses, or net income. We must close the income summary, which contains net income, to owner’s capital. This process zeroes out the income summary.

The final closing entry will be to move the owner’s withdrawals to the owner’s capital account. This will cause the withdrawal account to have a zero balance.

Let’s see how this process works. To prevent confusion, when you first try to make closing entries, it is an excellent idea to follow these four steps exactly.

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Let’s use the adjusted trial balance for FastForward and prepare the necessary closing entries. We will follow our four-step approach.

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1. Close Credit Balances in Revenue Accounts to Income Summary.

Using the adjusted trial balance, let’s prepare the closing entries for FastForward.

2. Close Debit Balances in Expense Accounts to Income Summary.

3. Close Income Summary to Owner’s Capital.

4. Close Withdrawals Account to Owner’s Capital.

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Our first step is to close the two revenue accounts. Since they have a credit balance, we will debit the accounts to zero out the balance.

Let’s look at the closing entry in the journal.

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Summary of the Closing Process

Close Credit Balances in Revenue Accounts to Income Summary.

Close Debit Balances in Expense Accounts to Income Summary.

Close Income Summary to Owner’s Capital.

Close Withdrawals Account to Owner’s Capital.

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Here is an overview of the closing process we just completed. Take a few minutes to study the steps as outlined, which will help you to understand the entire closing process.

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Let’s look at FastForward’s post-closing trial balance.

Post-Closing Trial Balance

List of permanent accounts and their balances after posting closing entries.

Total debits and credits must be equal.

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After all four of our closing entries have been made, we prepare a post-closing trial balance. This trial balance should show only permanent accounts, that is assets, liabilities, and the capital account. All the revenues, expenses, and withdrawals have been reduced to zero balances.

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Post-Closing Trial Balance

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The balance in all the temporary (income statement and owner’s withdrawal accounts) are zero and the post-closing trial balance lists all the permanent accounts with their current balances. Notice that the owner’s capital account has been updated to include net income and owner’s withdrawals.

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Accounting for Investments

and Joint Ventures

Four principal methods

Cost method

Recorded at cost and dividends are recognized

Fair value method

Assets recorded based on fair market value

Equity method

Share of earnings or losses is recognized

Consolidation

Reported as if one entity with subtraction for minority interest

Methods of Accounting for Investments / JVs

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Methods of Accounting for Investments / JVs

Cost Method

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Cost Method (minority interest, no influence or control- 20% or less)

Dividend income included in parent income when received based on net accumulated earnings of the subsidiary

Excess distributions beyond earnings treated as return of capital which reduce asset

Distributions that are greater than original cost and earnings are treated as gain

Cost method has limited practical use since timing is often not reflective of earnings

Investments may be written down to market value in certain circumstances

Methods of Accounting for Investments / JVs

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Equity Method (recommended, used with 20-50% ownership/control)

Income and loss recognized proportionately along with investee entity at the time that the investee recognizes the income or loss (not just dividends like cost)

Investment starts at cost and is adjusted based on income and cash transactions during the period

Therefore, dividends from the investee company (cash received) actually reduces carrying cost of investment

Amounts are shown as single line items for income and balance sheet (i.e. no details about underlying investment is provided)

Methods of Accounting for Investments / JVs

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Consolidation (greater than 50% ownership/control)

Reporting a subsidiary within the financial statements of the parent company

All lines of the reporting include parent and subsidiary as if wholly owned. Revenue and expenses are combined

No investment account exists on the balance sheet. Combined assets and liabilities

Portion of items owned by others is reported as a minority interest

Only one line to back out portion of items not owned on the income statement and equity accounts

Methods of Accounting for Investments / JVs

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Financial Statement Types

Compilation

No assurance as to whether changes are necessary to be in conformity with GAAP

Review

Independent requirement

Footnotes

Knowledge of industry, key aspects

Inquiries and analytical procedures

Audit

Test of financial statement assertions, using established generally accepted accounting criteria by obtaining evidence and a comparison of financial statement assertions with established accounting criteria.

Assertions include existence, occurrence, completeness, ownership, valuation, measurement, statement presentation

Assumes materiality, and good faith (re: not fraud)

Types of Financial Statements

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Balance Sheet

Overview

Balance sheet elements and format

Accounting issues

Current and noncurrent assets and liabilities

Measurement bases of different assets and liabilities

Components of shareholders’ equity

100

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Balance Sheet Contents

The balance sheet is also known as the statement of financial position or statement of financial condition.

The balance sheet discloses, at a specific point in time,

what an entity owns (or controls),

what it owes, and

what the owners’ claims are.

Assets = Liabilities + Owners’ equity

101

LOS. Describe the elements of the balance sheet: assets, liabilities, and equity.

The balance sheet is also called the statement of financial position or statement of financial condition.

IFRS uses the term “statement of financial position” (IAS 1, Presentation of Financial Statements), although U.S. GAAP uses the two terms interchangeably (ASC 210-10-05 [Balance Sheet–Overall–Overview and Background]).

The balance sheet discloses what an entity owns (or controls), what it owes, and what the owners’ claims are at a specific point in time.

The equation A = L + E is sometimes summarized as follows: The left side of the equation reflects the resources controlled by the company, and the right side reflects how those resources were financed.

101

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Balance Sheet Elements

Assets (A): resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Liabilities (L): obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Equity (E): represents the owners’ residual interest in the company’s assets after deducting its liabilities.

102

LOS. Describe the elements of the balance sheet: assets, liabilities, and equity.

The financial position of a company is described in terms of its basic elements (assets, liabilities, and equity):

Assets (A) are what the company owns (or controls). More formally, assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Liabilities (L) are what the company owes. More formally, liabilities represent obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Equity (E) represents the owners’ residual interest in the company’s assets after deducting its liabilities. Commonly known as shareholders’ equity or owners’ equity, equity is determined by subtracting the liabilities from the assets of a company.

Equations: A – L = E and A = L + E

Depending on the sophistication of the audience, the presenter could use the concept that a company’s equity is analogous to an individual’s net worth: total assets minus total liabilities.

For all financial statement items, an item should only be recognized in the financial statements if it is probable that any future economic benefit associated with the item will flow to or from the entity and if the item has a cost or value that can be measured with reliability.

102

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Equity

The balance sheet provides important information about a company’s financial condition.

However, balance sheet amounts of equity (assets, net of liabilities) should not be viewed as a measure of either the market or intrinsic value of a company’s equity.

Why?

The balance sheet is a mixed model with respect to measurement (some items at historical cost, some items at current value).

Even current value reflects a value that was current at the end of the reporting period.

Future cash flows, which affect value, are driven by items excluded from the balance sheet (e.g., reputation, management skills).

103

LOS. Describe uses and limitations of the balance sheet in financial analysis.

The balance sheet provides important information about a company’s financial condition, but the balance sheet amounts of equity (assets, net of liabilities) should not be viewed as a measure of either the market or intrinsic value of a company’s equity for several reasons.

First, the balance sheet under current accounting standards is a mixed model with respect to measurement. Some assets and liabilities are measured based on historical cost, sometimes with adjustments, whereas other assets and liabilities are measured based on a current value. The measurement bases may have a significant effect on the amount reported.

Second, even the items measured at current value reflect the value that was current at the end of the reporting period. The values of those items obviously can change after the balance sheet is prepared.

Third, the value of a company is a function of many factors, including future cash flows expected to be generated by the company and current market conditions. Important aspects of a company’s ability to generate future cash flows—for example, its reputation and management skills—are not included in its balance sheet.

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Measurement bases of noncurrent assets: Property, plant, and equipment

U.S. GAAP

Permit only the cost model for reporting PP&E.

Reversals of prior impairment losses are NOT allowed.

IFRS

Permit either cost model or revaluation model.

Can use different models for different classes of assets.

Must apply same model to all assets within a particular class.

Reversals of impairment losses are permitted.

104

LOS. Describe different types of assets and liabilities and the measurement bases of each.

PP&E measurement is another area where differences between U.S. GAAP and IFRS are notable.

This slide summarizes key differences.

104

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Measurement bases of noncurrent assets: Property, plant, and equipment

Property, plant, and equipment (PP&E): Tangible assets that are used in company operations over more than one fiscal period.

Under the cost model, PP&E is reported at historical cost less any accumulated depreciation and less any impairment losses.

Depreciation: Systematic allocation of cost over an asset’s useful life.

Land is not depreciated.

Impairment losses reflect an unanticipated decline in value.

Reversals of impairment losses are permitted under IFRS but not under U.S. GAAP.

Under the revaluation model, PP&E is reported at fair value at the date of revaluation less any subsequent accumulated depreciation.

The revaluation model is NOT permitted under U.S. GAAP.

105

LOS. Describe different types of assets and liabilities and the measurement bases of each.

Property, plant, and equipment (PP&E) are tangible assets that are used in company operations and expected to be used (provide economic benefits) over more than one fiscal period.

Examples of tangible assets treated as property, plant, and equipment include land, buildings, equipment, machinery, furniture, and natural resources, such as mineral and petroleum resources.

IFRS permit companies to report PP&E using either a cost model or a revaluation model. Although IFRS permit companies to use the cost model for some classes of assets and the revaluation model for others, the company must apply the same model to all assets within a particular class of assets.

U.S. GAAP permit only the cost model for reporting PP&E.

Under the cost model, PP&E is carried at amortized cost (historical cost less any accumulated depreciation or accumulated depletion and less any impairment losses).

Historical cost generally consists of an asset’s purchase price, its delivery cost, and any other additional costs incurred to make the asset operable (such as costs to install a machine).

Depreciation, and depletion, is the process of allocating (recognizing as an expense) the cost of a long-lived asset over its useful life.

Land is not depreciated.

Because PP&E is presented on the balance sheet net of depreciation and depreciation expense is recognized in the income statement, the choice of depreciation method and the related estimates of useful life and salvage value affect both a company’s balance sheet and income statement.

Whereas depreciation is the systematic allocation of cost over an asset’s useful life, impairment losses reflect an unanticipated decline in value.

Impairment occurs when the asset’s recoverable amount is less than its carrying amount, with terms defined as follows under IFRS:

Recoverable amount: The higher of an asset’s fair value less cost to sell and its value in use.

Fair value less cost to sell: The amount obtainable in a sale of the asset in an arm’s-length transaction between knowledgeable willing parties less the costs of the sale.

Value in use: The present value of the future cash flows expected to be derived from the asset.

When an asset is considered impaired, the company recognizes the impairment loss in the income statement.

Reversals of impairment losses are permitted under IFRS but not under U.S. GAAP.

Under the revaluation model, the reported and carrying value for PP&E is the fair value at the date of revaluation less any subsequent accumulated depreciation. Changes in the value of PP&E under the revaluation model affect equity directly or profit and loss depending upon the circumstances.

105

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Measurement bases of noncurrent assets: Intangible Assets

Intangible assets: Identifiable nonmonetary assets without physical substance (e.g., patents, licenses, trademarks).

Goodwill, which arises in business combinations and is not a separately identifiable asset, is covered separately in IFRS.

Measurement models for intangible assets:

IFRS allow either a cost model or a revaluation model for intangible assets.

U.S. GAAP allow only the cost model.

Measurement of intangible assets subsequent to acquisition:

Intangible asset with finite useful life: Amortize over useful life and assess for impairment when indicated.

Intangible asset with indefinite useful life: Do not amortize, but assess for impairment (annually under IFRS; only after qualitative assessment under U.S. GAAP).

106

LOS. Describe different types of assets and liabilities and the measurement bases of each.

Intangible assets - For example:

Patent: Exclusive right to a product or process, granted by the government to an inventor for a limited time.

License: Exclusive right to perform some activity, typically granted by a government to the purchaser of a license for a limited time.

Trademark: Exclusive right to word, name, symbol, or device that distinguish goods and services from those manufactured or sold by others. Can be renewed forever as long as it is being used in commerce.

Goodwill: Not a separately identifiable asset. Arises when a company acquires another company for a price in excess of fair market value of net identifiable assets acquired.

IFRS allow companies to report intangible assets using either a cost model or a revaluation model.

The revaluation model can only be selected when there is an active market for an intangible asset so that fair value can be determined by reference to an active market.

Such active markets are expected to be uncommon for intangible assets. Examples where they might exist are for some types of licenses (fishing licenses, taxi licenses).

U.S. GAAP permit only the cost model.

For each intangible asset, a company assesses whether the useful life of the asset is finite or indefinite.

Indefinite life: No foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity.

Finite life: A limited period of benefit to the entity.

Amortization and impairment principles apply as follows:

An intangible asset with a finite useful life

Is amortized on a systematic basis over the best estimate of its useful life, with the amortization method and useful life estimate reviewed at least annually.

Impairment principles for an intangible asset with a finite useful life are the same as for PPE.

An intangible asset with an indefinite useful life

Is not amortized.

Instead, at least annually, the reasonableness of assuming an indefinite useful life for the asset is reviewed and the asset is tested for impairment.

Note that under U.S. GAAP, ASU 2012-02 changed the requirements for a quantitative assessment of impairment for indefinite-lived intangible assets.

Previous guidance required a company to test for impairment on at least an annual basis by comparing the asset’s carrying value with its estimated fair value.

The new Accounting Standards Update issued in July 2012 provides that a company can first “assess qualitative factors to determine whether it is more likely than not [defined as > 50%] that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test.” This new guidance is similar to that for goodwill impairment testing in ASU 2011-08 issued in September 2011. In other words, if a company determines qualitatively that impairment is not more than 50%, it does not have to undertake quantitative tests (i.e., it has the option to forego an annual calculation of the fair value of an indefinite-lived intangible asset).

If an intangible asset is deemed to be impaired, an impairment loss is charged against income in the current period.

An impairment loss reduces current earnings.

An impairment loss also reduces total assets, so some performance measures, such as return on assets (net income divided by average total assets), may actually increase in future periods.

An impairment loss is a noncash item.

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Common types of current liabilities

Trade payables, also known as accounts payable: Amounts that a company owes its vendors for purchases of goods and services—in other words, the unpaid amounts of the company’s purchases on credit as of the balance sheet date.

Notes payable: Financial liabilities owed by a company to creditors, including trade creditors and banks, through a formal loan agreement.

Accrued expenses (also called “accrued expenses payable,” “accrued liabilities,” and other “nonfinancial liabilities”) are expenses that have been recognized on a company’s income statement but that have not yet been paid as of the balance sheet date.

Deferred income (also called “deferred revenue” and “unearned revenue”) arises when a company receives payment in advance of delivery of the goods and services associated with the payment.

107

LOS. Describe different types of assets and liabilities and the measurement bases of each.

Some of the common types of current liabilities include trade payables, financial liabilities, accrued expenses, and deferred income.

Trade payables, also known as accounts payable:

Amounts that a company owes its vendors for purchases of goods and services—in other words, the unpaid amounts of the company’s purchases on credit as of the balance sheet date.

An issue relevant to analysts is the trend in overall levels of trade payables relative to purchases (a topic to be addressed further in ratio analysis). Significant changes in accounts payable relative to purchases could signal potential changes in the company’s credit relationships with its suppliers.

Notes payable:

Financial liabilities owed by a company to creditors, including trade creditors and banks, through a formal loan agreement.

Any notes payable, loans payable, or other financial liabilities that are due within one year (or the operating cycle, whichever is longer) appear in the current liability section of the balance sheet.

In addition, any portions of long-term liabilities that are due within one year (i.e., the current portion of long-term liabilities) are shown in the current liability section of the balance sheet.

Accrued expenses:

Also called “accrued expenses payable,” “accrued liabilities,” and “other nonfinancial liabilities.”

Expenses that have been recognized on a company’s income statement but that have not yet been paid as of the balance sheet date. Examples include income taxes payable, accrued interest payable, accrued warranty costs, and accrued employee compensation (i.e., wages payable).

Deferred income:

Also called “deferred revenue” and “unearned revenue.”

Income that arises when a company receives payment in advance of delivery of the goods and services associated with the payment. The company has an obligation either to provide the goods or services or to return the cash received. Examples include lease payments received at the beginning of a lease, fees for servicing office equipment received at the beginning of the service period, and payments for magazine subscriptions received at the beginning of the subscription period.

107

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Common types of non-current liabilities

Long-term financial liabilities: Include loans (i.e., borrowings from banks) and notes or bonds payable (i.e., fixed-income securities issued to investors).

Usually reported at amortized cost on the balance sheet.

In certain cases, liabilities, such as bonds, issued by a company are reported at fair value.

Deferred tax liabilities: Amount of income taxes payable in future periods with respect of taxable temporary differences.

Result from temporary timing differences between a company’s income as reported for tax purposes (taxable income) and income as reported for financial statement purposes (reported income).

108

LOS. Describe different types of assets and liabilities and the measurement bases of each.

Two common types of noncurrent liabilities are long-term financial liabilities and deferred tax liabilities.

Long-term financial liabilities include

loans (i.e., borrowings from banks) and notes or bonds payable (i.e., fixed-income securities issued to investors).

They are usually reported at amortized cost on the balance sheet.

At maturity, the amortized cost of the bond (carrying amount) will be equal to the face value of the bond.

Example 1: If a company issues $10,000,000 of bonds at par, the bonds are reported as a long-term liability of $10 million. The carrying amount (amortized cost) from issue to maturity remains at $10 million.

Example 2: If a company issues $10,000,000 of bonds at a price of 97.50 (a discount to par), the bonds are reported as a liability of $9,750,000. Over the bond’s life, the discount of $250,000 is amortized so that the bond will be listed as a liability of $10,000,000 at maturity. Similarly, any bond premium would be amortized for bonds issued at a price in excess of face or par value.

In certain cases, liabilities, such as bonds, issued by a company are reported at fair value.

Those cases include financial liabilities held for trading, derivatives that are a liability to the company, and some nonderivative instruments, such as those that are hedged by derivatives.

Deferred tax liabilities are amounts of income taxes payable in future periods with respect of taxable temporary differences.

They result from temporary timing differences between a company’s income as reported for tax purposes (taxable income) and income as reported for financial statement purposes (reported income).

They result when taxable income and the actual income tax payable in a period based on it is less than the reported financial statement income before taxes and the income tax expense based on it.

They typically arise when items of expense are included in taxable income in earlier periods than for financial statement net income. The difference between taxes payable and income tax expense results in a deferred tax liability. For example, when companies use accelerated depreciation methods for tax purposes and straight-line depreciation methods for financial statement purposes, taxable income is less than income before taxes in the earlier periods.

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Components of shareholders’ equity

Capital contributed by owners (or common stock or share capital)

Preferred shares

Treasury shares (or treasury stock)

Retained earnings

Accumulated other comprehensive income (or other reserves, items recognized directly in equity)

Noncontrolling interest (or minority interest)

109

LOS. Describe the components of shareholders’ equity.

Capital contributed by owners: Also known as common stock or issued capital. The amount contributed to the company by owners.

Ownership of a corporation is evidenced through the issuance of common shares.

Common shares may have a par value (or stated value) or may be issued as no par shares (depending on regulations governing the incorporation).

Disclosures for each class of share issued by the company:

Par or stated value, if one exists.

Number of shares authorized: The number of shares that may be sold by the company under its articles of incorporation.

Number of shares issued: The number of shares that have been sold to investors.

Number of shares outstanding: The number of issued shares less treasury shares.

Preferred shares: Shares that have rights that take precedence over the rights of common shareholders.

Preferential rights generally pertain to receipt of dividends and receipt of assets if the company is liquidated.

Classified as equity or financial liabilities based upon their characteristics rather than legal form.

perpetual, nonredeemable preferred shares are classified as equity.

preferred shares with mandatory redemption at a fixed amount at a future date are classified as financial liabilities.

Treasury shares (treasury stock or own shares repurchased): Shares in the company that have been repurchased by the company and are held as treasury shares rather than being cancelled.

A company is able to sell (reissue) these shares.

A company may repurchase its shares when

management considers the shares undervalued,

it needs shares to fulfill employees’ stock options, or

it wants to limit the effects of dilution from various employee stock compensation plans.

A purchase of treasury shares reduces shareholders’ equity by the amount of the acquisition cost and reduces the number of total shares outstanding.

If treasury shares are subsequently reissued, a company does not recognize any gain or loss from the reissuance on the income statement.

Treasury shares are nonvoting and do not receive any dividends declared by the company.

Retained earnings: The cumulative amount of earnings recognized in the company’s income statements that have not been paid to the owners of the company as dividends.

Recall that beginning retained earnings plus net income minus dividends equals ending retained earnings.

Accumulated other comprehensive income (AOCI): (also known as other reserves; for L’Oreal, “items recognized directly in equity”) the cumulative amount of other comprehensive income or loss.

Other comprehensive income refers to income that is not recognized on the income statement.

Recall that beginning AOCI + Other comprehensive income = Ending AOCI.

Noncontrolling interest (or minority interest): The equity interests of minority shareholders in the subsidiary companies that have been consolidated by the parent (controlling) company but that are not wholly owned by the parent company.

Comprehensive income is defined as “the change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.” FASB ASC Section 220-10-05 [Comprehensive Income–Overall–Overview and Background]. There is no explicit definition of comprehensive income in IFRS; the implicit definition is similar to that above. IFRS define income in the glossary as “increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.”

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Summary

Balance Sheet: what an entity owns (or controls), what it owes, and what the owners’ claims are at a specific point in time.

Accounting issues relate primarily to measurement (historical cost versus fair value).

Balance sheet ratios indicate liquidity and solvency.

110

Assets=Liabilities+Equity

Cash =Joan Taylor, Equity

(1) +$1,500,000 +$1,500,000

Sheet1

Assets	=	Liabilities	+	Equity
Cash	=			Joan Taylor, Equity
(1	) +$1,500,000				+$1,500,000

CashDepositsJoan Taylor, Equity

Old Bal.1,500,000$ +=$1,500,000

(2)

(50,000) +50,000

New Bal.1,450,000 50,000

$1,500,000$1,500,000

Assets

Sheet1

Assets				=	Liabilities	+	Equity
	Cash		Deposits				Joan Taylor, Equity
Old Bal.	$ 1,500,000	+		=			$1,500,000
(2)	(50,000)	+	50,000
New Bal.	1,450,000		50,000
	$1,500,000						$1,500,000

=+Equity

CashDepositsLandBuildingSecurity DepositsMortgageJoan Taylor, Equity

Old Bal.1,450,000$ +50,000 ++= $1,500,000

(3)

(250,000) +(50,000) +500,000 +3,000,000 200,000 +3,000,000 -

New Bal.1,200,000 - 500,000 3,000,000 200,000 3,000,000 $1,500,000

$4,700,000

Assets

Liabilities

$4,700,000

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

=+Equity

CashLandBuildingAccounts PayableSecurity DepositsMortgageJoan Taylor, Equity

Old Bal.1,200,000$ +500,000 +3,000,000 =+200,000 3,000,000 $1,500,000

(4)

- +- +250,000 250,000 - - -

New Bal.1,200,000 500,000 3,250,000 250,000 200,000 3,000,000 $1,500,000

Assets

Liabilities

$4,950,000$4,950,000

Sheet1 (2)

Assets						=			Liabilities			+	Equity
	Cash		Land		Building		Accounts Payable		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,200,000	+	500,000	+	3,000,000	=		+	200,000		3,000,000		$1,500,000
(4	)	- 0	+	- 0	+	250,000		250,000		- 0		- 0		- 0
New Bal.	1,200,000		500,000		3,250,000		250,000		200,000		3,000,000		$1,500,000
	$4,950,000						$4,950,000

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

=+Equity

CashLandBuildingAccounts PayableSecurity DepositsMortgageJoan Taylor, Equity

Old Bal.1,200,000$ 500,000 3,250,000 250,000 200,000 3,000,000 $1,500,000

(5)

(50,000) +7,000 +43,000 - - -

New Bal.1,150,000 507,000 3,293,000 250,000 200,000 3,000,000 $1,500,000

Assets

Liabilities

$4,950,000$4,950,000

Sheet1 (2)

Assets						=		Liabilities		+	Equity
	Cash		Land		Building		Accounts Payable	Security Deposits	Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,200,000		500,000		3,250,000		250,000	200,000	3,000,000		$1,500,000
(5)	(50,000)	+	7,000	+	43,000			- 0	- 0		- 0
New Bal.	1,150,000		507,000		3,293,000		250,000	200,000	3,000,000		$1,500,000
	$4,950,000						$4,950,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Cash+Land+Building+SL RentAccounts Payable+Security Deposits+MortgageJoan Taylor, Equity+Revenue-Expenses

Old Bal.1,150,000$ 507,000 3,293,000 - 250,000 200,000 3,000,000 $1,500,000

(6)

120,000 +- +- 51,000 - - - 171,000 -

New Bal.1,270,000 507,000 3,293,000 51,000 250,000 200,000 3,000,000 1,500,000 171,000 -

Assets

Liabilities

$5,121,000 $5,121,000

Equity

Total

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																1,500,000
(2)	$ (50,000)			+	50,000					=						+	- 0
Bal.	1,450,000				50,000												1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000	=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000				200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000	=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000		250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000	=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000
(6)	$ 171,000					+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,321,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0	=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,309,000						507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,287,000		4,000				507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,284,360		4,000				507,000		3,293,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,284,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	784,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,150,000		507,000		3,293,000		- 0		250,000		200,000		3,000,000		$1,500,000
(6	)	120,000	+	- 0	+	- 0		51,000				- 0		- 0		- 0	- 0	171,000		- 0
New Bal.	1,270,000		507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000		171,000		- 0
	$5,121,000								$5,121,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Cash+Land+Building+SL RentAccounts Payable+Security Deposits+MortgageJoan Taylor, Equity+Revenue-Expenses

Old Bal.1,270,000$ 507,000 3,293,000 51,000 250,000 200,000 3,000,000 1500000171000

(7)

(12,000) +- +- - 10,000 - - - - (22,000)

New Bal.1,258,000 507,000 3,293,000 51,000 260,000 200,000 3,000,000 1,500,000 171,000 (22,000)

Assets

Liabilities

$5,109,000 $5,109,000

Equity

Total

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																1,500,000
(2)	$ (50,000)			+	50,000					=						+	- 0
Bal.	1,450,000				50,000												1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000	=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000				200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000	=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000		250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000	=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000
(6)	$ 171,000					+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,321,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0	=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,309,000						507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,287,000		4,000				507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,284,360		4,000				507,000		3,293,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,284,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	784,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,270,000		507,000		3,293,000		51,000		250,000		200,000		3,000,000		1500000		171000
(7	)	(12,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171,000		(22,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Cash+Prepaid Exp.+Land+Building+SL RentAccounts Payable+Security Deposits+MortgageJoan Taylor, Equity+Revenue-Expenses

Old Bal.1,258,000$ -$ 507,000 3,293,000 51,000 260,000 200,000 3,000,000 1,500,000 171,000 (22,000)

(8)

(22,000) 4,000 +- +- - - - - - - (18,000)

New Bal.1,236,000 4,000 507,000 3,293,000 51,000 260,000 200,000 3,000,000 1,500,000 171,000 (40,000)

Assets

LiabilitiesEquity

$5,091,000 $5,091,000

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		$ - 0		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171,000		(22,000)
(8	)	(22,000)		4,000	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0	- 0	- 0		(18,000)
New Bal.	1,236,000		4,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171,000		(40,000)
	$5,091,000										$5,091,000
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																1,500,000
(2)	$ (50,000)			+	50,000					=						+	- 0
Bal.	1,450,000				50,000												1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000	=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000				200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000	=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000		250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000	=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000
(6)	$ 171,000					+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,321,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0	=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,309,000						507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,287,000		4,000				507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,284,360		4,000				507,000		3,293,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,284,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	784,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Cash+Prepaid Exp.+Land+Building+SL RentAccounts Payable+Security Deposits+MortgageJoan Taylor, Equity+Revenue-Expenses

Old Bal.1,236,000$ 4,000$ 507,000 3,293,000 51,000 260,000 200,000 3,000,000 1,500,000 171,000 (40,000)

(9)

(2,640) - +- +- - 590 - - - - (3,230)

New Bal.1,233,360 4,000 507,000 3,293,000 51,000 260,590 200,000 3,000,000 1,500,000 171,000 (43,230)

Assets

LiabilitiesEquity

$5,088,360 $5,088,360

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,236,000		$ 4,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171,000		(40,000)
(9	)	(2,640)		- 0	+	- 0	+	- 0		- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,233,360		4,000		507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000		171,000		(43,230)
	$5,088,360										$5,088,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																1,500,000
(2)	$ (50,000)			+	50,000					=						+	- 0
Bal.	1,450,000				50,000												1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000	=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000				200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000	=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000		250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000	=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000
(6)	$ 171,000					+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,321,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0	=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,309,000						507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,287,000		4,000				507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,284,360		4,000				507,000		3,293,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,284,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	784,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Cash+Prepaid Exp.+Land+Building+SL RentAccounts Payable+Security Deposits+MortgageJoan Taylor, Equity+Revenue-Expenses

Old Bal.1,233,360$ 4,000$ 507,000 3,293,000 51,000 260,590 200,000 3,000,000 1,500,000 171,000 (43,230)

(10)

- - +- +- - 2,500 - - - - (2,500)

New Bal.1,233,360 4,000 507,000 3,293,000 51,000 263,090 200,000 3,000,000 1,500,000 171,000 (45,730)

Assets

LiabilitiesEquity

$5,088,360 $5,088,360

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000		171,000		(43,230)
(10	)	- 0		- 0	+	- 0	+	- 0		- 0		2,500		- 0		- 0		- 0	- 0	- 0		(2,500)
New Bal.	1,233,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360										$5,088,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																1,500,000
(2)	$ (50,000)			+	50,000					=						+	- 0
Bal.	1,450,000				50,000												1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000	=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000				200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000	=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000		250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000	=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000
(6)	$ 171,000					+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,321,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0	=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,309,000						507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,287,000		4,000				507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,284,360		4,000				507,000		3,293,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,284,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	784,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Cash+Prepaid Exp.+Land+Building+SL RentAccounts Payable+Security Deposits+Mortgage+Joan Taylor, Equity+Joan Taylor, Withdraw+Revenue-Expenses

Old Bal.1,233,360$ 4,000$ 507,000 3,293,000 51,000 263,090 200,000 3,000,000 1,500,000 171,000 (45,730)

(11)

(500,000) - +- +- - - - - - (500,000) - -

New Bal.733,360 4,000 507,000 3,293,000 51,000 263,090 200,000 3,000,000 1,500,000 (500,000) 171,000 (45,730)

Assets

LiabilitiesEquity

$4,588,360 $4,588,360

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																1,500,000
(2)	$ (50,000)			+	50,000					=						+	- 0
Bal.	1,450,000				50,000												1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000	=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000				200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000	=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000		250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000	=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000
(6)	$ 171,000					+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,321,000						507,000		3,293,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0	=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,309,000						507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,287,000		4,000				507,000		3,293,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,284,360		4,000				507,000		3,293,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,284,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	784,360		4,000				507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Cash+Prepaid Expense+Deposits+Land+Building+SL Rent=Accounts Payable+Security Deposits+Mortgage+Joan Taylor, Equity-Joan Taylor, Withdraw+Revenue-Expenses

(1)1,500,000$ 1,500,000

(2)(50,000)$ +50,000=+-

Bal.1,450,000 50,000 1,500,000

(3)(250,000)$ +(50,000)+500,000 +3,000,000 =+200,000 +3,000,000 +

Bal.1,200,000 0500,000 3,000,000 200,000 3,000,000 1,500,000

(4)-$ +- +250,000 =250,000 +- +- +-

Bal.1,200,000 500,000 3,250,000 250,000 200,000 3,000,000 1,500,000

(5)(50,000)$ +7,000 +43,000 =- +- +- +-

Bal.1,150,000 507,000 3,293,000 250,000 200,000 3,000,000 1,500,000

(6)120,000$ +- +- 51,000 =- +- +- +- +171,000

Bal.1,270,000 507,000 3,293,000 51,000 250,000 200,000 3,000,000 1,500,000 171,000

(7)(12,000)$ +- +- =10,000 +- +- +- +- -(22,000)

Bal.1,258,000 507,000 3,293,000 51,000 260,000 200,000 3,000,000 1,500,000 171,000 (22,000)

(8)(22,000)$ +4,000 +- +- - =- +- +- +- +- -(18,000)

Bal.1,236,000 4,000 507,000 3,293,000 51,000 260,000 200,000 3,000,000 1,500,000 171,000 (40,000)

(9)(2,640) +- +- +- - =590 +- +- +- +- -(3,230)

Bal.1,233,360 4,000 507,000 3,293,000 51,000 260,590 200,000 3,000,000 1,500,000 171,000 (43,230)

(10)- +- +- +- - =2,500 +- +- +- +- -(2,500)

Bal.1,233,360 4,000 507,000 3,293,000 51,000 263,090 200,000 3,000,000 1,500,000 171,000 (45,730)

(11)

(500,000) +- +- +- - =- +- +- +- -(500,000) +- --

New Bal.733,360 4,000 507,000 3,293,000 51,000 263,090 200,000 3,000,000 1,500,000 (500,000) 171,000 (45,730)

Assets

LiabilitiesEquity

$4,588,360 $4,588,360

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Receive investment by owner1,500,000 Pay deposit on commercial building50,000

Collection of rental income from tenant120,000 Purchase of building250,000

Purchase of tenant improvements50,000

Payment of property taxes12,000

Payment of management fee22,000

Payment of utilities2,640

Withdrawal by owner500,000

Balance1,233,360

Cash

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

(2) ANALYZE

Assets=Liabilities+Equity

+1,500,000+1,500,000

(3) RECORD

DateAccount titles and explanationDebitCredit

(1) Cash1,500,000

Joan Taylor, Equity1,500,000

(1)1,500,000

Cash

101

301

Joan

Taylor,

Equity

Cash

101

(1)1,500,000

Joan Taylor, Equity

301

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

Sheet4

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

(2) ANALYZE

Assets=Liabilities+Equity

Accounts Payable

- 2,500

(3) RECORD

DateAccount titles and explanationDebitCredit

(10) Professional fee expense2,500

Accounts Payable2,500 201

(1)2,500PR

691

Professional Fees Expense

691

(1)2,500

Professional

fees expense

Accounts Payable

201+ 2,500

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

FASTFORWARD

Trial Balance

31-Dec-18

12/31/2018

Cash733,360

Deposits-

Prepaid expenses4,000

Land507,000

Building3,293,000

Straight - Line Rent51,000

Accumulated depreciation-

Intangibles-

Accumulated amortization-

Accounts payable(250,000)

Accrued expense(13,090)

Prepaid rent-

Security deposits(200,000)

Notes payable(3,000,000)

Capital(1,000,000)

Rent(171,000)

Property tax expense22,000

Interest expense-

Insurance expense-

Maintenance expense18,000

Utilities expense3,230

Depeciation expense-

Amortization expense-

Other expense2,500

SUM-

DebitCredit

Cash733,360

Deposits-

Prepaid expenses4,000

Land507,000

Building3,293,000

Straight - Line Rent51,000

Accounts payable250,000

Accrued expense13,090

Security deposits200,000

Notes payable3,000,000

Capital1,000,000

Rent171,000

Property tax expense22,000

Maintenance expense18,000

Utilities expense3,230

Other expense2,500

SUM4,634,090 4,634,090

Trial Balance

31-Dec-18

FASTFORWARD

T Accounts

	Assets
	Cash		Deposits		Prepaid Expenses		Land		Building		Straight Line Rent		Accumulated Depreciation		Intangibles		Accumulated Amortization
	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +			Normal -				Normal -
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
1	1,500,000
2		(50,000)	50,000
3		(250,000)		(50,000)			500,000		3,000,000
4									250,000
5		(50,000)					7,000		43,000
6	120,000										51,000
7		(12,000)
8		(22,000)			4,000
9		(2,640)
10		- 0
11		(500,000)
12
13
14
15
	733,360		- 0		4,000		507,000		3,293,000		51,000			- 0	- 0			- 0
	Liabilities and Equity
	Accounts Payable		Accrued Expense		Prepaid Rent		Security Deposits		Notes Payable		Capital
		Normal -		Normal -		Normal -		Normal -		Normal -		Normal -
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
1												(1,500,000)
3								(200,000)		(3,000,000)
4		(250,000)
6
7				(10,000)
8				(590)
9
10				(2,500)
11
12
11											500,000
12
		(250,000)		(13,090)		- 0		(200,000)		(3,000,000)		(1,000,000)
	Rent		Property Tax		Interest		Insurance		Management		Utilities		Depreciation		Amortization		Other Expense
		Normal -	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +		Normal +		Normal +
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
6		(171,000)
7			22,000
8									18,000
9											3,230
10																	2,500
11
		(171,000)	22,000		- 0		- 0		18,000		3,230		- 0		- 0		2,500

T Accounts (2)

	Assets
	Cash		Deposits		Prepaid Expenses		Land		Building		SL Rent		Accumulated Depreciation		Intangibles	Accumulated Amortization
	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +			Normal -			Normal -
post-closing	733,360		- 0		4,000		507,000		3,293,000		51,000			- 0	- 0		- 0
	600,000										100,000
	700,000
		(3,300)
		(14,000)				(4,000)
		(12,000)
		(2,500)
		(390,695)
														(11,720)
																	- 0
		(12,000)													12,000
																	(2,400)
	240,000											(12,000)
	1,838,865		- 0		- 0		507,000		3,293,000		139,000			(11,720)	12,000		(2,400)
	Liabilities and Equity
	Accounts Payable		Accrued Expense		Prepaid Rent		Security Deposits		Notes Payable		Capital
		Normal -		Normal -		Normal -		Normal -		Normal -		Normal -
post-closing		(250,000)		(13,090)				(200,000)		(3,000,000)		(1,000,000)
post-closing											(125,270)
						(700,000)
			(300)
		(6,000)
			800
									242,858
		(256,000)		(12,590)		(700,000)		(200,000)		(2,757,142)		(1,125,270)
	Rent		Property Tax		Interest		Insurance		Management		Utilities		Depreciation		Amortization	Other Expense
		Normal -	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +		Normal +	Normal +
		(700,000)
											3,600
			12,000						24,000
																1,700
					147,837
													11,720
															- 0
		(228,000)													2,400
		(928,000)	12,000		147,837		- 0		24,000		3,600		11,720		2,400	1,700

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	12/31/18	12/31/19
Cash	733,360	1,838,865
Deposits	- 0	- 0
Prepaid expenses	4,000	- 0
Land	507,000	507,000
Building	3,293,000	3,293,000
Straight - Line Rent	51,000	139,000
Accumulated depreciation	- 0	(11,720)
Intangibles	- 0	12,000
Accumulated amortization	- 0	(2,400)
Accounts payable	(250,000)	(256,000)
Accrued expense	(13,090)	(12,590)
Prepaid rent	- 0	(700,000)
Security deposits	(200,000)	(200,000)
Notes payable	(3,000,000)	(2,757,142)
Capital	(1,000,000)	(1,125,270)
Rent	(171,000)	(928,000)
Property tax expense	22,000	12,000
Interest expense	- 0	147,837
Insurance expense	- 0	- 0
Maintenance expense	18,000	24,000
Utilities expense	3,230	3,600
Depeciation expense	- 0	11,720
Amortization expense	- 0	2,400
Other expense	2,500	1,700
SUM	- 0	0

Calculations

2018				2019
#5
Cash	(250,000)
Land	350,000
Building	3,150,000
Debt	(3,000,000)
Security Deposits	(200,000)
Deposits	(50,000)
				#1
#7
Rent	20,000		15,614.04	Rent
Months requiring payment	57		57	2019	600000
Total cash	1,140,000		890,000	2020	700000
months of lease	60			2021	700000
Rent per month (GAAP)	19,000			2022	700000
months in 2018 Term	9			2023	800000
Revenue	171,000	cr rent revenue		Total rent	3500000
				Years	5
Cash Payments				SL Rent	700000
Monthly cash	20,000
Months of payment	6
	120,000	dr cash received
				#3
	51,000			Monthly utilities	300
				months	12
				Expense	3600
#11				Less unpaid	-300
Feb	280			paid for 2019	3300
Mar	300
Apr	310
May	300			previous accrued utiliity	0
June	300			new accrual	-300
Julu	310			2018 additional cash paid	300
Aug	320
Sept	240			total cash paid	-3300
Oct	280
Paid in 2018	2,640			#4
				Management	2000
Nov	290			monsth	12
Dec	300			expense	24000
- 0
Expense	3,230			credit for prepaid	-4000
				paid 3 months in arrears	-6000
Accrued Expense	590
				Cash paid in 2019	14000
Adjustment 1				#5
				property tax paid	12000
Building	293,000	293,000
Months	300	25		#6
Monthly depreciation	977	11,720		2018 professional fees paid	-2500
2018 Depreciation	10,743	10,743		2019 professional fees incured	1700
2019 and After	11,720			decrease in accrual	-800
Building Improvement	- 0
Months	300			#7
Monthly depreciation	- 0
2018 Depreciation	- 0
2019 and After	- 0
				Jan	310
2018 Total	10,743			Feb	290
2019 Total	11,720			Mar	305
				Apr	310
Adjustment 2				May	290
				June	310
Loan Fees	- 0			Julu	310
Months	120			Aug	330
Monthly depreciation	- 0			Sept	260
2018 Depreciation	- 0			Oct	270
2019 and After	- 0				280
				Paid in 2018	3,265
#A3
Interest from Dec 15 - Jan 15 2019	12,825
Incurred through December 31, 2018	6,412.43			Dec	320
				- 0
#A4				Expense	3,585
6 months of property tax	12,000
1 month	2,000			Accrued Expense	320
				Less prior accrual	590
				Dr to accrual	(270)
				Lease 1st year income	600000
				commsion	2%
				intangible	12000
				years	5
				amortization per year	2400

Permanent Loan

Permanent Loan Schedule
Loan amount - principal balance		$ 3,000,000		- 0	Construction loan repaid
Interest rate		5.5000%	Annual rate	0.4583%	Monthly rate	Solve for PMT (using excel formula)
Amortization period		10	Years	120	Months	0.0000%	12	0.4583%	Monthly Rate
Debt service amount (principal and interest)		$ 25,000	Per month PMT	$ (390,694.68)	Per year PMT	- 0	12	120	Periods
Loan closing date (repay construction loan)		2/1/18				- 0	1	3,000,000	PV
								$ (32,558)	PMT (outlays)
Payment Dates	Beginning Balance	Debt Service PMT	Interest Paid	Principal Amortized	Outstanding Balance
15-Feb-18	3,000,000	16,279	6,875	9,404	2,990,596	2,990,596
15-Mar-18	2,990,596	32,558	13,707	18,851	2,971,745			$ - 0	Perm loan proceeds
15-Apr-18	2,971,745	32,558	13,620	18,937	2,952,808			- 0	Repayment of construction
15-May-13	2,952,808	32,558	13,534	19,024	2,933,783			$ - 0	Net increase in cash flows
15-Jun-13	2,933,783	32,558	13,447	19,111	2,914,672
15-Jul-13	2,914,672	32,558	13,359	19,199	2,895,473
15-Aug-13	2,895,473	32,558	13,271	19,287	2,876,186
15-Sep-13	2,876,186	32,558	13,183	19,375	2,856,811
15-Oct-13	2,856,811	32,558	13,094	19,464	2,837,347
15-Nov-13	2,837,347	32,558	13,005	19,553	2,817,793
15-Dec-18	2,817,793	32,558	12,915	19,643	2,798,150
2018 Total		341,858	140,008	201,850
15-Jan-19	2,798,150	32,558	12,825	19,733	2,778,417
28-Feb-14	2,778,417	32,558	12,734	19,823	2,758,594
31-Mar-14	2,758,594	32,558	12,644	19,914	2,738,679
30-Apr-14	2,738,679	32,558	12,552	20,006	2,718,674
31-May-14	2,718,674	32,558	12,461	20,097	2,698,576
30-Jun-14	2,698,576	32,558	12,368	20,189	2,678,387
31-Jul-14	2,678,387	32,558	12,276	20,282	2,658,105
31-Aug-14	2,658,105	32,558	12,183	20,375	2,637,730
30-Sep-14	2,637,730	32,558	12,090	20,468	2,617,262
31-Oct-14	2,617,262	32,558	11,996	20,562	2,596,700
30-Nov-14	2,596,700	32,558	11,902	20,656	2,576,043
31-Dec-14	2,576,043	32,558	11,807	20,751	2,555,292
2014 Total		390,695	147,837	242,858
31-Jan-15	2,555,292	32,558	11,712	20,846	2,534,446
28-Feb-15	2,534,446	32,558	11,616	20,942	2,513,505
31-Mar-15	2,513,505	32,558	11,520	21,038	2,492,467
30-Apr-15	2,492,467	32,558	11,424	21,134	2,471,333
31-May-15	2,471,333	32,558	11,327	21,231	2,450,102
30-Jun-15	2,450,102	32,558	11,230	21,328	2,428,774
31-Jul-15	2,428,774	32,558	11,132	21,426	2,407,348
31-Aug-15	2,407,348	32,558	11,034	21,524	2,385,823
30-Sep-15	2,385,823	32,558	10,935	21,623	2,364,201
31-Oct-15	2,364,201	32,558	10,836	21,722	2,342,479
30-Nov-15	2,342,479	32,558	10,736	21,822	2,320,657
31-Dec-15	2,320,657	32,558	10,636	21,922	2,298,736
2015 Total		390,695	134,138	256,557
31-Jan-16	2,298,736	32,558	10,536	22,022	2,276,714
29-Feb-16	2,276,714	32,558	10,435	22,123	2,254,591
31-Mar-16	2,254,591	32,558	10,334	22,224	2,232,366
30-Apr-16	2,232,366	32,558	10,232	22,326	2,210,040
31-May-16	2,210,040	32,558	10,129	22,429	2,187,611
30-Jun-16	2,187,611	32,558	10,027	22,531	2,165,080
31-Jul-16	2,165,080	32,558	9,923	22,635	2,142,446
31-Aug-16	2,142,446	32,558	9,820	22,738	2,119,707
30-Sep-16	2,119,707	32,558	9,715	22,843	2,096,865
31-Oct-16	2,096,865	32,558	9,611	22,947	2,073,917
30-Nov-16	2,073,917	32,558	9,505	23,052	2,050,865
31-Dec-16	2,050,865	32,558	9,400	23,158	2,027,707
2016 Total		390,695	119,666	271,029
31-Jan-17	2,027,707	32,558	9,294	23,264	2,004,443
28-Feb-17	2,004,443	32,558	9,187	23,371	1,981,072
31-Mar-17	1,981,072	32,558	9,079.91	23,478	1,957,594
30-Apr-17	1,957,594	32,558	8,972.30	23,586	1,934,008
31-May-17	1,934,008	32,558	8,864.20	23,694	1,910,314
30-Jun-17	1,910,314	32,558	8,755.61	23,802	1,886,512
31-Jul-17	1,886,512	32,558	8,646.51	23,911	1,862,601
31-Aug-17	1,862,601	32,558	8,536.92	24,021	1,838,580
30-Sep-17	1,838,580	32,558	8,426.82	24,131	1,814,449
31-Oct-17	1,814,449	32,558	8,316.22	24,242	1,790,207
30-Nov-17	1,790,207	32,558	8,205.12	24,353	1,765,854
31-Dec-17	1,765,854	32,558	8,093.50	24,464	1,741,390
2017 Total		390,695	104,378	286,317

Balance Sheet

	Balance Sheet
	As of December 2018 and 2019
Assets
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Change Increase/ (Decrease)
Cash	1,838,865	733,360
Deposits	- 0	- 0		0	0
Prepaid expenses	- 0	4,000		4,000	-4,000
Straight Line Rent	139,000	51,000		51,000	88,000
Land	507,000	507,000		507,000	0
Building	3,293,000	3,293,000		3,293,000	0
Fixtures
Less: Accumulated Depreciation	(11,720)	- 0			-11,720
Net Real Property	3,788,280	3,800,000		3,800,000
Intangible assets	12,000	- 0		0	12,000
Accumulated amortization	(2,400)	- 0			-2,400
Intangible assets, net	9,600	- 0
Total	-----------	-----------
	5,775,745	4,588,360
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000		250,000	6,000
Accrued expense	12,590	13,090		13,090	-500
Prepaid rent	700,000	- 0		0	700,000
Security deposits	200,000	200,000		200,000	0
Notes payable	2,757,142	3,000,000		3,000,000	-242,858
Joan's Capital	1,850,013	1,125,270
	---------	-------
	5,775,745	4,588,360
	================	================

Income Statement

	Income Statement
	For the Year Ended December 31, 2018
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	0
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	0
Amortization expense	0
Other expense	2,500
	---------
Total expenses		45,730
		---------
Net Income (Loss)		$125,270
		=======
	Income Statement
	For the Year Ended December 31, 2019
Rental Revenue		$928,000
Property tax expense	12,000
Interest expense	147,837
Insurance expense	0
Maintenance expense	24,000
Utilities expense	3,600
Depeciation expense	11,720
Amortization expense	2,400
Other expense	1,700
	---------
Total expenses		203,257
		---------
Net Income (Loss)		$724,743
		=======

Owners Equity

	Statement of Owners Equity
	For the Year Ended December 31, 2018
Joan, Capital, January 1, 2018		$0
Plus: Investments by owner	1,500,000
Net income	125,270
	---------
		1,625,270
Less: Withdrawals by owner	500,000
Net loss
	---------
		500,000
		---------
Joan, Capital, December 31, 2018		1,125,270
		=====
Joan, Capital, January 1, 2019		$1,125,270
Plus: Investments by owner
Net income	724,743
	---------
		724,743
Less: Withdrawals by owner
Net loss	0
	---------
		0
		---------
Joan, Capital, December 31, 2019		1,850,013
		=====

Cash Flow

				For the Year Ended December 31, 2018
Cash Flows From Operating Activities:
Net income		$724,743		$125,270
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$11,720		$0
Amortization	$2,400		$0
Decrease (increase) in prepaid expenses	4,000		-4,000
Decrease (increase) in deposits	0		0
Decrease (increase) in accrued revenue	-88,000		-51,000
Increase (decrease) in accounts payable	6,000		250,000
Increase (decrease) in accrued expenses	-500		13,090
Increase (decrease) in prepaid rent	700,000		0
Increase (decrease) in security deposits	0		200,000
	---------------		---------------
Total adjustments to reconclie net income to net cash provided by operating activities		$635,620		$408,090
Net cash provided by operating activities		1,360,363		533,360
Cash Flows From Investing Activities:
Cash used in acquisition of real estate land and building			-3,800,000
Cash used in acquisition of intangible assets	(12,000)		0
	---------------		---------------
Net cash used in investing activities		(12,000)		(3,800,000)
Cash Flows From Financing Activities:
Cash received from owner contributions	0		1,500,000
Net cash used in repayment of notes payable	(242,858)		0
Net cash received in borrowings on notes payable	0		3,000,000
	----------		----------
Net cash provided by financing activities		(242,858)		4,500,000
		-----------		-----------
Net increase (decrease) in cash		$1,105,505		$1,233,360
Cash, January 1, 2018		0		0
		-----------		-----------
Cash, December 31, 2018		1,105,505		1,233,360
		=======		=======

Sheet1

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Income Statement

For the Year Ended December 31, 2018

Rental Revenue$171,000

Property tax expense22,000

Maintenance expense18,000

Utilities expense3,230

Other expense2,500

---------

Total expenses45,730

---------

Net Income (Loss)$125,270

=======

Statement of Owners Equity

For the Year Ended December 31, 2018

Joan, Capital, January 1, 2018$0

Plus: Investments by owner1,500,000

Net income 125,270

---------

1,625,270

Less: Withdrawals by owner500,000

Net loss

---------

500,000

---------

Joan, Capital, December 31, 20181,125,270

=====

Assets

Cash 733,360

Deposits -

Prepaid expenses 4,000

Straight Line Rent 51,000

Land 507,000

Building 3,293,000

Fixtures

Less: Accumulated Depreciation -

Net Real Property 3,800,000

Intangible assets -

Accumulated amortization -

Intangible assets, net -

------------------

Total Assets 4,588,360

================

Liabilities and Stockholder's Equity

Accounts payable 250,000

Accrued expense 13,090

Prepaid rent -

Security deposits 200,000

Notes payable 3,000,000

Joan's Capital

1,125,270

------------------

Total Laibilitied and Shareholders Equity 4,588,360

================

Balance Sheet

As of December 31, 2018

T Accounts

	Assets
	Cash		Deposits		Prepaid Expenses		Land		Building		Straight Line Rent		Accumulated Depreciation		Intangibles		Accumulated Amortization
	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +			Normal -				Normal -
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
1	1,500,000
2		(50,000)	50,000
4		(30,000)					30,000
5		(250,000)		(50,000)			500,000		3,000,000
5a								(43,000)	43,000
7	171,000
8									250,000
9		(12,000)
10		(22,000)			4,000
11		(2,640)
5b
A1
A2																		- 0
	1,304,360		- 0		4,000		487,000		3,293,000		- 0			- 0	- 0			- 0
	Liabilities and Equity
	Accounts Payable		Accrued Expense		Prepaid Rent		Security Deposits		Notes Payable		Capital
		Normal -		Normal -		Normal -		Normal -		Normal -		Normal -
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
1												(1,500,000)
5								(200,000)		(3,000,000)
		(250,000)
11				(590)
12				(2,500)
A3				(10,000)
A4				- 0
		(250,000)		(13,090)		- 0		(200,000)		(3,000,000)		(1,500,000)
	Rent		Property Tax		Interest		Insurance		Management		Utilities		Depreciation		Amortization		Other Expense
		Normal -	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +		Normal +		Normal +
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
7		(171,000)
9			22,000
10									18,000
11											3,230
12																	2,500
A1
A2															- 0
A3
a4
		(171,000)	22,000		- 0		- 0		18,000		3,230		- 0		- 0		2,500

T Accounts (2)

	Assets
	Cash		Deposits		Prepaid Expenses		Land		Building		SL Rent		Accumulated Depreciation		Intangibles	Accumulated Amortization
	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +			Normal -			Normal -
post-closing	1,304,360		- 0		4,000		487,000		3,293,000		- 0			- 0	- 0		- 0
1	600,000										100,000
2	700,000
3		(3,890)
4		(14,000)				(4,000)
5		(12,000)
6		(2,500)
A3		(390,695)
A1														(131,720)
A2																	- 0
lease commission		(12,000)													12,000
A2																	(2,400)
building a rent	240,000											(12,000)
	2,409,275		- 0		- 0		487,000		3,293,000		88,000			(131,720)	12,000		(2,400)
	Liabilities and Equity
	Accounts Payable		Accrued Expense		Prepaid Rent		Security Deposits		Notes Payable		Capital
		Normal -		Normal -		Normal -		Normal -		Normal -		Normal -
post-closing		(250,000)		(13,090)				(200,000)		(3,000,000)		(1,500,000)
post-closing											(125,270)
2						(700,000)
3			290
4		(6,000)
6			800
a3									242,858
		(256,000)		(12,000)		(700,000)		(200,000)		(2,757,142)		(1,625,270)
	Rent		Property Tax		Interest		Insurance		Management		Utilities		Depreciation		Amortization	Other Expense
		Normal -	Normal +		Normal +		Normal +		Normal +		Normal +		Normal +		Normal +	Normal +
1		(700,000)
3											3,600
4
5			12,000						24,000
6																1,700
A3					147,837
A1													131,720
A2															- 0
building a rent		(228,000)													2,400
		(928,000)	12,000		147,837		- 0		24,000		3,600		131,720		2,400	1,700

Trial balance

	12/31/18	12/31/19
Cash	1,304,360	2,409,275
Deposits	- 0	- 0
Prepaid expenses	4,000	- 0
Land	487,000	487,000
Building	3,293,000	3,293,000
Straight - Line Rent	- 0	88,000
Accumulated depreciation	- 0	(131,720)
Intangibles	- 0	12,000
Accumulated amortization	- 0	(2,400)
Accounts payable	(250,000)	(256,000)
Accrued expense	(13,090)	(12,000)
Prepaid rent	- 0	(700,000)
Security deposits	(200,000)	(200,000)
Notes payable	(3,000,000)	(2,757,142)
Capital	(1,500,000)	(1,625,270)
Rent	(171,000)	(928,000)
Property tax expense	22,000	12,000
Interest expense	- 0	147,837
Insurance expense	- 0	- 0
Maintenance expense	18,000	24,000
Utilities expense	3,230	3,600
Depeciation expense	- 0	131,720
Amortization expense	- 0	2,400
Other expense	2,500	1,700
SUM	- 0	(0)

Calculations

2018				2019
#5
Cash	(250,000)
Land	350,000
Building	3,150,000
Debt	(3,000,000)
Security Deposits	(200,000)
Deposits	(50,000)
				#1
#7
Rent	20,000		15,614.04	Rent
Months requiring payment	57		57	2019	600000
Total cash	1,140,000		890,000	2020	700000
months of lease	60			2021	700000
Rent per month (GAAP)	19,000			2022	700000
months in 2018 Term	9			2023	800000
Revenue	171,000	cr rent revenue		Total rent	3500000
				Years	5
Cash Payments				SL Rent	700000
Monthly cash	20,000
Months of payment	6
	120,000	dr cash received
				#3
	51,000			Monthly utilities	300
				months	12
				Expense	3600
#11				Less unpaid	-300
Feb	280			paid for 2019	3300
Mar	300
Apr	310
May	300			previous accrued utiliity	-590
June	300			new accrual	-300
Julu	310			2018 additional cash paid	-290
Aug	320
Sept	240			total cash paid	-3890
Oct	280
Paid in 2018	2,640			#4
				Management	2000
Nov	290			monsth	12
Dec	300			expense	24000
- 0
Expense	3,230			credit for prepaid	-4000
				paid 3 months in arrears	-6000
Accrued Expense	590
				Cash paid in 2019	14000
Adjustment 1				#5
				property tax paid	12000
Building	3,043,000	3,043,000
Months	300	25		#6
Monthly depreciation	10,143	121,720		2018 professional fees paid	-2500
2018 Depreciation	111,577	111,577		2019 professional fees incured	1700
2019 and After	121,720			decrease in accrual	-800
Building Improvement	250,000
Months	300			#7
Monthly depreciation	833
2018 Depreciation	7,500
2019 and After	10,000
				Jan	310
2018 Total	119,077			Feb	290
2019 Total	131,720			Mar	305
				Apr	310
Adjustment 2				May	290
				June	310
Loan Fees	- 0			Julu	310
Months	120			Aug	330
Monthly depreciation	- 0			Sept	260
2018 Depreciation	- 0			Oct	270
2019 and After	- 0				280
				Paid in 2018	3,265
#A3
Interest from Dec 15 - Jan 15 2019	12,825
Incurred through December 31, 2018	6,412.43			Dec	320
				- 0
#A4				Expense	3,585
6 months of property tax	12,000
1 month	2,000			Accrued Expense	320
				Less prior accrual	590
				Dr to accrual	(270)
				Lease 1st year income	600000
				commsion	2%
				intangible	12000
				years	5
				amortization per year	2400

Permanent Loan

Permanent Loan Schedule
Loan amount - principal balance		$ 3,000,000		- 0	Construction loan repaid
Interest rate		5.5000%	Annual rate	0.4583%	Monthly rate	Solve for PMT (using excel formula)
Amortization period		10	Years	120	Months	0.0000%	12	0.4583%	Monthly Rate
Debt service amount (principal and interest)		$ 25,000	Per month PMT	$ (390,694.68)	Per year PMT	- 0	12	120	Periods
Loan closing date (repay construction loan)		2/1/18				- 0	1	3,000,000	PV
								$ (32,558)	PMT (outlays)
Payment Dates	Beginning Balance	Debt Service PMT	Interest Paid	Principal Amortized	Outstanding Balance
15-Feb-18	3,000,000	16,279	6,875	9,404	2,990,596	2,990,596
15-Mar-18	2,990,596	32,558	13,707	18,851	2,971,745			$ - 0	Perm loan proceeds
15-Apr-18	2,971,745	32,558	13,620	18,937	2,952,808			- 0	Repayment of construction
15-May-13	2,952,808	32,558	13,534	19,024	2,933,783			$ - 0	Net increase in cash flows
15-Jun-13	2,933,783	32,558	13,447	19,111	2,914,672
15-Jul-13	2,914,672	32,558	13,359	19,199	2,895,473
15-Aug-13	2,895,473	32,558	13,271	19,287	2,876,186
15-Sep-13	2,876,186	32,558	13,183	19,375	2,856,811
15-Oct-13	2,856,811	32,558	13,094	19,464	2,837,347
15-Nov-13	2,837,347	32,558	13,005	19,553	2,817,793
15-Dec-18	2,817,793	32,558	12,915	19,643	2,798,150
2018 Total		341,858	140,008	201,850
15-Jan-19	2,798,150	32,558	12,825	19,733	2,778,417
28-Feb-14	2,778,417	32,558	12,734	19,823	2,758,594
31-Mar-14	2,758,594	32,558	12,644	19,914	2,738,679
30-Apr-14	2,738,679	32,558	12,552	20,006	2,718,674
31-May-14	2,718,674	32,558	12,461	20,097	2,698,576
30-Jun-14	2,698,576	32,558	12,368	20,189	2,678,387
31-Jul-14	2,678,387	32,558	12,276	20,282	2,658,105
31-Aug-14	2,658,105	32,558	12,183	20,375	2,637,730
30-Sep-14	2,637,730	32,558	12,090	20,468	2,617,262
31-Oct-14	2,617,262	32,558	11,996	20,562	2,596,700
30-Nov-14	2,596,700	32,558	11,902	20,656	2,576,043
31-Dec-14	2,576,043	32,558	11,807	20,751	2,555,292
2014 Total		390,695	147,837	242,858
31-Jan-15	2,555,292	32,558	11,712	20,846	2,534,446
28-Feb-15	2,534,446	32,558	11,616	20,942	2,513,505
31-Mar-15	2,513,505	32,558	11,520	21,038	2,492,467
30-Apr-15	2,492,467	32,558	11,424	21,134	2,471,333
31-May-15	2,471,333	32,558	11,327	21,231	2,450,102
30-Jun-15	2,450,102	32,558	11,230	21,328	2,428,774
31-Jul-15	2,428,774	32,558	11,132	21,426	2,407,348
31-Aug-15	2,407,348	32,558	11,034	21,524	2,385,823
30-Sep-15	2,385,823	32,558	10,935	21,623	2,364,201
31-Oct-15	2,364,201	32,558	10,836	21,722	2,342,479
30-Nov-15	2,342,479	32,558	10,736	21,822	2,320,657
31-Dec-15	2,320,657	32,558	10,636	21,922	2,298,736
2015 Total		390,695	134,138	256,557
31-Jan-16	2,298,736	32,558	10,536	22,022	2,276,714
29-Feb-16	2,276,714	32,558	10,435	22,123	2,254,591
31-Mar-16	2,254,591	32,558	10,334	22,224	2,232,366
30-Apr-16	2,232,366	32,558	10,232	22,326	2,210,040
31-May-16	2,210,040	32,558	10,129	22,429	2,187,611
30-Jun-16	2,187,611	32,558	10,027	22,531	2,165,080
31-Jul-16	2,165,080	32,558	9,923	22,635	2,142,446
31-Aug-16	2,142,446	32,558	9,820	22,738	2,119,707
30-Sep-16	2,119,707	32,558	9,715	22,843	2,096,865
31-Oct-16	2,096,865	32,558	9,611	22,947	2,073,917
30-Nov-16	2,073,917	32,558	9,505	23,052	2,050,865
31-Dec-16	2,050,865	32,558	9,400	23,158	2,027,707
2016 Total		390,695	119,666	271,029
31-Jan-17	2,027,707	32,558	9,294	23,264	2,004,443
28-Feb-17	2,004,443	32,558	9,187	23,371	1,981,072
31-Mar-17	1,981,072	32,558	9,079.91	23,478	1,957,594
30-Apr-17	1,957,594	32,558	8,972.30	23,586	1,934,008
31-May-17	1,934,008	32,558	8,864.20	23,694	1,910,314
30-Jun-17	1,910,314	32,558	8,755.61	23,802	1,886,512
31-Jul-17	1,886,512	32,558	8,646.51	23,911	1,862,601
31-Aug-17	1,862,601	32,558	8,536.92	24,021	1,838,580
30-Sep-17	1,838,580	32,558	8,426.82	24,131	1,814,449
31-Oct-17	1,814,449	32,558	8,316.22	24,242	1,790,207
30-Nov-17	1,790,207	32,558	8,205.12	24,353	1,765,854
31-Dec-17	1,765,854	32,558	8,093.50	24,464	1,741,390
2017 Total		390,695	104,378	286,317

Balance Sheet

	Income Statement
Balance Sheet
As of December 31, 2018
Assets		Dec. 31, 2019		Dec. 31, 2017	Change Increase/ (Decrease)
Cash		2,409,275	733,360
Deposits		- 0	- 0		0	0
Prepaid expenses		- 0	4,000		4,000	-4,000
Straight Line Rent		88,000	51,000		51,000	37,000
Land		487,000	507,000		507,000	-20,000
Building		3,293,000	3,293,000		3,293,000	0
Fixtures
Less: Accumulated Depreciation		(131,720)	- 0			-131,720
Net Real Property		3,648,280	3,800,000		3,800,000
Intangible assets		12,000	- 0		0	12,000
Accumulated amortization		(2,400)	- 0			-2,400
Intangible assets, net		9,600	- 0
			------------------
Total Assets		-----------	4,588,360
		6,155,155	================
Liabilities and Stockholder's Equity		================
Accounts payable		256,000	250,000		250,000	6,000
Accrued expense		12,000	13,090		13,090	-1,090
Prepaid rent		700,000	- 0		0	700,000
Security deposits		200,000	200,000		200,000	0
Notes payable		2,757,142	3,000,000		3,000,000	-242,858
Joan's Capital		2,230,013	1,125,270
		---------	------------------
Total Laibilitied and Shareholders Equity		6,155,155	4,588,360
		================	================

Income Statement

	Income Statement
	For the Year Ended December 31, 2018
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	0
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	0
Amortization expense	0
Other expense	2,500
	---------
Total expenses		45,730
		---------
Net Income (Loss)		$125,270
		=======
	Income Statement
	For the Year Ended December 31, 2019
Rental Revenue		$928,000
Property tax expense	12,000
Interest expense	147,837
Insurance expense	0
Maintenance expense	24,000
Utilities expense	3,600
Depeciation expense	131,720
Amortization expense	2,400
Other expense	1,700
	---------
Total expenses		323,257
		---------
Net Income (Loss)		$604,743
		=======

Owners Equity

	Statement of Owners Equity
	For the Year Ended December 31, 2018 and 2019
Joan, Capital, January 1, 2018		$0
Plus: Investments by owner	1,500,000
Net income
	---------
		1,500,000
Less: Withdrawals by owner
Net loss	125,270
	---------
		125,270
		---------
Joan, Capital, December 31, 2018		1,625,270
		=====
Joan, Capital, January 1, 2019		$1,625,270
Plus: Investments by owner
Net income	604,743
	---------
		604,743
Less: Withdrawals by owner
Net loss	0
	---------
		0
		---------
Joan, Capital, December 31, 2019		2,230,013
		=====

Cash Flow

				For the Year Ended December 31, 2018
Cash Flows From Operating Activities:
Net income		$604,743		$125,270
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$131,720		$0
Amortization	$2,400		$0
Decrease (increase) in prepaid expenses	4,000		-4,000
Decrease (increase) in deposits	0		0
Decrease (increase) in accrued revenue	-37,000		-51,000
Increase (decrease) in accounts payable	6,000		250,000
Increase (decrease) in accrued expenses	-1,090		13,090
Increase (decrease) in prepaid rent	700,000		0
Increase (decrease) in security deposits	0		200,000
	---------------		---------------
Total adjustments to reconclie net income to net cash provided by operating activities		$806,030		$408,090
Net cash provided by operating activities		1,410,773		533,360
Cash Flows From Investing Activities:
Cash used in acquisition of real estate land and building			-3,800,000
Cash used in acquisition of intangible assets	(12,000)		0
	---------------		---------------
Net cash used in investing activities		(12,000)		(3,800,000)
Cash Flows From Financing Activities:
Cash received from owner contributions	0		1,500,000
Net cash used in repayment of notes payable	(242,858)		0
Net cash received in borrowings on notes payable	0		3,000,000
	----------		----------
Net cash provided by financing activities		(242,858)		4,500,000
		-----------		-----------
Net increase (decrease) in cash		$1,155,915		$1,233,360
Cash, January 1, 2018		ERROR:#REF!		ERROR:#REF!
		-----------		-----------
Cash, December 31, 2018		ERROR:#REF!		ERROR:#REF!
		=======		=======

Sheet1

Dec. 31Depreciation Expense - Equipment10,000

Accumulated Depreciation - Equipment10,000

To record monthly equipment depreciation

Larson

Insurance Expense

Company Name

Dec. 31

Depreciation Expense - Equipment

10,000

Dec. 31 2,000

Financial Statement

Accumulated Depreciation - Equipment

10,000

Date

To record monthly equipment depreciation

FastForward

Partial Balance Sheet

At December 31, 2018

Assets

Cash

Land500,000$

Equipment3,000,000

Less: accumulated deprec.(110,000)

Net property3,390,000

Total Assets

Sheet1


FastForward
Partial Balance Sheet
At December 31, 2018
Assets
Cash
Land	$ 500,000
Equipment	3,000,000
Less: accumulated deprec.	(110,000)
Net property		3,390,000
.
Total Assets

Page &P

Sheet2

Page &P

Sheet3

Page &P

Sheet4

Page &P

Sheet5

Page &P

Sheet6

Page &P

Dec. 31Loan Payable201,850

Interest Expense140,008

Cash341,858

To record cash payments on loan

Dec. 15 201850

Loan Paybale

Dec. 15 140008

Interest Expense

Dec. 15 341,858

Cash

Larson

Cash

Company Name

Dec. 31

Salaries expense . . . . . . . .

47,250

Dec. 15 341,858

Financial Statement

Salaries payable . . . .

47,250

Date

To accrue 3-day's salary

Larson

Basketball Revenue

Company Name

Dec. 31

Loan Payable

201,850

Interest Expense

140,008

Dec. 31 50,000

Financial Statement

Cash

341,858

Date

To record cash payments on loan

Larson

Loan Paybale

Company Name

Dec. 31

Salaries expense . . . . . . . .

47,250

Dec. 15 201850

Financial Statement

Salaries payable . . . .

47,250

Date

To accrue 3-day's salary

Larson

Interest Expense

Company Name

Dec. 31

Salaries expense . . . . . . . .

47,250

Dec. 15 140008

Financial Statement

Salaries payable . . . .

47,250

Date

To accrue 3-day's salary

Dec. 31Interest Expense6,794

Interest Payable6,794

To accrue interest ($2,817,793 × 5.5% × 16/365)

Dec. 31 6794

Interest Expense

Dec. 31 6794

Interest Payable

Larson

Basketball Revenue

Company Name

Dec. 31

Interest Expense

6,794

Dec. 31 50,000

Financial Statement

Interest Payable

6,794

Date

To accrue interest ($2,817,793 × 5.5% × 16/365)

Larson

Interest Expense

Company Name

Dec. 31

Salaries expense . . . . . . . .

47,250

Dec. 31 6794

Financial Statement

Salaries payable . . . .

47,250

Date

To accrue 3-day's salary

Larson

Interest Payable

Company Name

Dec. 31

Salaries expense . . . . . . . .

47,250

Dec. 31 6794

Financial Statement

Salaries payable . . . .

47,250

Date

To accrue 3-day's salary

DebitCreditDebitCreditDebitCredit

Cash733,360 371,858 733,360 371,858

Prepaid expenses4,000 4,000 -

Land507,000 507,000 -

Building3,293,000 3,293,000 -

Straight - Line Rent51,000 51,000 -

Accumulated depreciation- 110,000 - 110,000

Intangibles- 30,000 30,000 -

Accumulated amortization- 2,750 - 2,750

Accounts payable250,000 - 250,000

Accrued expense13,090 - 13,090

Prepaid rent- - -

Security deposits200,000 - 200,000

Notes payable3,000,000 201,850 201,850 3,000,000

Capital1,000,000 - 1,000,000

Rent171,000 - 171,000

Property tax expense22,000 22,000 -

Interest expense- 140,008 140,008 -

Insurance expense- - -

Maintenance expense18,000 18,000 -

Utilities expense3,230 3,230 -

Depeciation expense- 110,000 110,000 -

Amortization expense- 2,750 2,750 -

Other expense2,500 2,500 -

SUM4,634,090 4,634,090 484,608 484,608 5,118,698 5,118,698

Unadjusted Trial BalanceAdjustmentsAdjusted Trial Balance

FASTFORWARD

Trial Balance

31-Dec-18

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0
Insurance expense	- 0				- 0	- 0
Maintenance expense	18,000				18,000	- 0
Utilities expense	3,230				3,230	- 0
Depeciation expense	- 0		110,000		110,000	- 0
Amortization expense	- 0		2,750		2,750	- 0
Other expense	2,500				2,500	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense 691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable 201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11)	(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash 101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity 301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0	(500,000)	- 0	- 0		- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10)	- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0		(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

DebitCredit

Cash733,360 371,858

Prepaid expenses4,000 -

Land507,000 -

Building3,293,000 -

Straight - Line Rent51,000 -

Accumulated depreciation- 110,000

Intangibles30,000 -

Accumulated amortization- 2,750

Accounts payable- 250,000

Accrued expense- 13,090

Prepaid rent- -

Security deposits- 200,000

Notes payable201,850 3,000,000

Capital- 1,000,000

Rent- 171,000

Property tax expense22,000 -

Interest expense140,008 -

Insurance expense- -

Maintenance expense18,000 -

Utilities expense3,230 -

Depeciation expense110,000 -

Amortization expense2,750 -

Other expense2,500 -

SUM5,118,698 5,118,698

Adjusted Trial Balance

FASTFORWARD

Trial Balance

31-Dec-18

Step 1 - Prepare an income statement

Rental Revenue$171,000

Property tax expense22,000

Interest expense140,008

Insurance expense0

Maintenance expense18,000

Utilities expense3,230

Depeciation expense110,000

Amortization expense2,750

Other expense2,500

Total expenses298,488

---------

Net Income (Loss)($127,488)

=======

FASTFORWARD

Income Statement

31-Dec-18

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0
Insurance expense	- 0				- 0	- 0
Maintenance expense	18,000				18,000	- 0
Utilities expense	3,230				3,230	- 0
Depeciation expense	- 0		110,000		110,000	- 0
Amortization expense	- 0		2,750		2,750	- 0
Other expense	2,500				2,500	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0
Insurance expense	- 0				- 0	- 0
Maintenance expense	18,000				18,000	- 0
Utilities expense	3,230				3,230	- 0
Depeciation expense	- 0		110,000		110,000	- 0
Amortization expense	- 0		2,750		2,750	- 0
Other expense	2,500				2,500	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Step 2 - Prepare owners equity statement

Joan, Capital, January 1, 2018$0

Plus: Investments by owner1,500,000

Net income 0

------------

1,500,000

Less: Withdrawals by owner500,000

Net loss127,488

------------

627,488

---------

Joan, Capital, December 31, 2018

872,512

=====

FASTFORWARD

Statement of Owners Equity

For the Year Ended December 31, 2018

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0
Insurance expense	- 0				- 0	- 0
Maintenance expense	18,000				18,000	- 0
Utilities expense	3,230				3,230	- 0
Depeciation expense	- 0		110,000		110,000	- 0
Amortization expense	- 0		2,750		2,750	- 0
Other expense	2,500				2,500	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Assets

Dec. 31, 2018

Cash 361,502

Prepaid expenses 4,000

Straight Line Rent 51,000

Land 507,000

Building 3,293,000

Less: Accumulated Depreciation (110,000)

Net Real Property 3,690,000

Intangible assets 30,000

Accumulated amortization (2,750)

Intangible assets, net 27,250

Total ------------------------

4,133,752

Liabilities and Stockholder's Equity

================

Accounts payable 250,000

Accrued expense 13,090

Security deposits 200,000

Notes payable 2,798,150

Joan's Capital 872,512

------------------------

4,133,752

================

FASTFORWARD

Balance Sheet

As of December 31, 2018

Step 2 - Prepare owners equity statement

Joan, Capital, January 1, 2018$0

Plus: Investments by owner1,500,000

Net income 0

------------

1,500,000

Less: Withdrawals by owner500,000

Net loss127,488

------------

627,488

---------

Joan, Capital, December 31, 2018

872,512

=====

FASTFORWARD

Statement of Owners Equity

For the Year Ended December 31, 2018

DebitCredit

Cash733,360 371,858

Prepaid expenses4,000 -

Land507,000 -

Building3,293,000 -

Straight - Line Rent51,000 -

Accumulated depreciation- 110,000

Intangibles30,000 -

Accumulated amortization- 2,750

Accounts payable- 250,000

Accrued expense- 13,090

Prepaid rent- -

Security deposits- 200,000

Notes payable201,850 3,000,000

Capital- 1,000,000

Adjusted Trial Balance

FASTFORWARD

Trial Balance

31-Dec-18

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

DebitCredit

Cash733,360 371,858

Prepaid expenses4,000 -

Land507,000 -

Building3,293,000 -

Straight - Line Rent51,000 -

Accumulated depreciation- 110,000

Intangibles30,000 -

Accumulated amortization- 2,750

Accounts payable- 250,000

Accrued expense- 13,090

Prepaid rent- -

Security deposits- 200,000

Notes payable201,850 3,000,000

Capital- 1,000,000

Rent- 171,000

Property tax expense22,000 -

Interest expense140,008 -

Insurance expense- -

Maintenance expense18,000 -

Utilities expense3,230 -

Depeciation expense110,000 -

Amortization expense2,750 -

Other expense2,500 -

SUM5,118,698 5,118,698

Adjusted Trial Balance

FASTFORWARD

Trial Balance

31-Dec-18

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171,000			- 0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

DebitCredit

Cash733,360 371,858

Prepaid expenses4,000 -

Land507,000 -

Building3,293,000 -

Straight - Line Rent51,000 -

Accumulated depreciation- 110,000

Intangibles30,000 -

Accumulated amortization- 2,750

Accounts payable- 250,000

Accrued expense- 13,090

Prepaid rent- -

Security deposits- 200,000

Notes payable201,850 3,000,000

Capital- 1,000,000

Rent0171,000

Property tax expense22,000 -

Interest expense140,008 -

Insurance expense- -

Maintenance expense18,000 -

Utilities expense3,230 -

Depeciation expense110,000 -

Amortization expense2,750 -

Other expense2,500 -

SUM5,118,698 5,118,698

Adjusted Trial Balance

FASTFORWARD

Trial Balance

31-Dec-18

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171000			0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000

Sheet6

DebitCredit

Cash733,360 371,858

Prepaid expenses4,000 -

Land507,000 -

Building3,293,000 -

Straight - Line Rent51,000 -

Accumulated depreciation- 110,000

Intangibles30,000 -

Accumulated amortization- 2,750

Accounts payable- 250,000

Accrued expense- 13,090

Prepaid rent- -

Security deposits- 200,000

Notes payable201,850 3,000,000

Capital- 872,512

SUM4,820,210 4,820,210

FASTFORWARD

Post-Closing Trial Balance

31-Dec-18

Adjusted Trial Balance

Trial balance (3)

FASTFORWARD
Post-Closing Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	872,512
SUM	4,588,360	4,463,090	231,850	484,608	4,820,210	4,820,210

Balance Sheet

FASTFORWARD
Balance Sheet
As of December 31, 2018
Assets
	Dec. 31, 2019	Dec. 31, 2018
Cash	1,838,865	361,502
Deposits	- 0	- 0
Prepaid expenses	- 0	4,000
Straight Line Rent	139,000	51,000
Land	507,000	507,000
Building	3,293,000	3,293,000
Fixtures		- 0
Less: Accumulated Depreciation	(11,720)	(110,000)
Net Real Property	3,788,280	3,690,000
Intangible assets	12,000	30,000
Accumulated amortization	(2,400)	(2,750)
Intangible assets, net	9,600	27,250
Total	-----------	------------------------
	5,775,745	4,133,752
Liabilities and Stockholder's Equity	================	================
Accounts payable	256,000	250,000
Accrued expense	12,590	13,090
Prepaid rent	700,000	- 0
Security deposits	200,000	200,000
Notes payable	2,757,142	2,798,150
Joan's Capital	1,850,013	872,512
	---------	------------------------
	5,775,745	4,133,752
	================	================

Trial balance (2)

FASTFORWARD
Trial Balance
31-Dec-18
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	733,360			371,858	733,360	371,858
Deposits	- 0				- 0
Prepaid expenses	4,000				4,000	- 0
Land	507,000				507,000	- 0
Building	3,293,000				3,293,000	- 0
Straight - Line Rent	51,000				51,000	- 0
Accumulated depreciation	- 0			110,000	- 0	110,000
Intangibles	- 0		30,000		30,000	- 0
Accumulated amortization	- 0			2,750	- 0	2,750
Accounts payable		250,000			- 0	250,000
Accrued expense		13,090			- 0	13,090
Prepaid rent		- 0			- 0	- 0
Security deposits		200,000			- 0	200,000
Notes payable		3,000,000	201,850		201,850	3,000,000
Capital		1,000,000			- 0	1,000,000
Rent		171000			0	171,000
Property tax expense	22,000				22,000	- 0
Interest expense	- 0		140,008		140,008	- 0	- 0
Insurance expense	- 0				- 0	- 0	- 0
Maintenance expense	18,000				18,000	- 0	- 0
Utilities expense	3,230				3,230	- 0	- 0
Depeciation expense	- 0		110,000		110,000	- 0	- 0
Amortization expense	- 0		2,750		2,750	- 0	- 0
Other expense	2,500				2,500	- 0	- 0
SUM	4,634,090	4,634,090	484,608	484,608	5,118,698	5,118,698

Sheet10

Step 1 - Prepare an income statement
FASTFORWARD
Income Statement
31-Dec-18
Rental Revenue		$171,000
Property tax expense	22,000
Interest expense	140,008
Insurance expense	0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	110,000
Amortization expense	2,750
Other expense	2,500
Total expenses		298,488
		---------
Net Income (Loss)		($127,488)
		=======
			Step 2 - Prepare owners equity statement
			FASTFORWARD
			Statement of Owners Equity
			For the Year Ended December 31, 2018
			Joan, Capital, January 1, 2018		$0
			Plus: Investments by owner	1,500,000
			Net income	0
				------------
					1,500,000
			Less: Withdrawals by owner	500,000
			Net loss	127,488
				------------
					627,488
					---------
			Joan, Capital, December 31, 2018		872,512
					=====

Trial balance

FASTFORWARD
Trial Balance
31-Dec-18
	Debit	Credit
Cash	733,360
Deposits	- 0
Prepaid expenses	4,000
Land	507,000
Building	3,293,000
Straight - Line Rent	51,000
Accumulated depreciation	- 0
Intangibles	- 0
Accumulated amortization	- 0
Accounts payable		250,000
Accrued expense		13,090
Prepaid rent		- 0
Security deposits		200,000
Notes payable		3,000,000
Capital		1,000,000
Rent		171,000
Property tax expense	22,000
Interest expense	- 0
Insurance expense	- 0
Maintenance expense	18,000
Utilities expense	3,230
Depeciation expense	- 0
Amortization expense	- 0
Other expense	2,500
SUM	4,634,090	4,634,090

aNALYZE (2)

X. Pay professional fees expense

(1) IDENTIFY

Fastforward incurs bookkeeping expenses of $2,500 on credit

(4) POST

Professional Fees Expense

691

(2) ANALYZE

Assets

Liabilities

Equity

(1)

2,500

Accounts Payable

Professional fees expense

+ 2,500

- 2,500

Accounts Payable

201

(1)

2,500

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(10)

Professional fee expense

691

2,500

Accounts Payable

201

2,500

Sheet1 (5)

Assets										=			Liabilities			+	Equity
	Cash	+	Prepaid Exp.	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	+	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,233,360		$ 4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)	(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0		- 0		- 0		(500,000)	- 0	- 0		- 0
New Bal.	733,360		4,000		507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360										$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429				7.1428571429

Total

Assets												=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Deposits	+	Land	+	Building	+	SL Rent	=	Accounts Payable	+	Security Deposits	+	Mortgage	+	Joan Taylor, Equity	-	Joan Taylor, Withdraw	+	Revenue	-	Expenses
(1)	$ 1,500,000																		1,500,000
(2)	$ (50,000)			+	50,000							=						+	- 0
Bal.	1,450,000				50,000														1,500,000
(3)	$ (250,000)			+	(50,000)	+	500,000	+	3,000,000			=		+	200,000	+	3,000,000	+
Bal.	1,200,000				0		500,000		3,000,000						200,000		3,000,000		1,500,000
(4)	$ - 0					+	- 0	+	250,000			=	250,000	+	- 0	+	- 0	+	- 0
Bal.	1,200,000						500,000		3,250,000				250,000		200,000		3,000,000		1,500,000
(5)	$ (50,000)					+	7,000	+	43,000			=	- 0	+	- 0	+	- 0	+	- 0
Bal.	1,150,000						507,000		3,293,000				250,000		200,000		3,000,000		1,500,000
(6)	$ 120,000					+	- 0	+	- 0		51,000	=	- 0	+	- 0	+	- 0	+	- 0			+	171,000
Bal.	1,270,000						507,000		3,293,000		51,000		250,000		200,000		3,000,000		1,500,000				171,000
(7)	$ (12,000)					+	- 0	+	- 0			=	10,000	+	- 0	+	- 0	+	- 0			+	- 0	-	(22,000)
Bal.	1,258,000						507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(22,000)
(8)	$ (22,000)	+	4,000			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0			+	- 0	-	(18,000)
Bal.	1,236,000		4,000				507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000				171,000		(40,000)
(9)	(2,640)	+	- 0			+	- 0	+	- 0		- 0	=	590	+	- 0	+	- 0	+	- 0			+	- 0	-	(3,230)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		260,590		200,000		3,000,000		1,500,000				171,000		(43,230)
(10)	- 0	+	- 0			+	- 0	+	- 0		- 0	=	2,500	+	- 0	+	- 0	+	- 0			+	- 0	-	(2,500)
Bal.	1,233,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000				171,000		(45,730)
(11	)		(500,000)	+	- 0			+	- 0	+	- 0		- 0	=	- 0	+	- 0	+	- 0	+	- 0	-	(500,000)	+	- 0	-	- 0
New Bal.	733,360		4,000				507,000		3,293,000		51,000		263,090		200,000		3,000,000		1,500,000		(500,000)		171,000		(45,730)
	$4,588,360												$4,588,360

Sheet3

Cash
Receive investment by owner	1,500,000	Pay deposit on commercial building	50,000
Collection of rental income from tenant	120,000	Purchase of building	250,000
		Purchase of tenant improvements	50,000
		Payment of property taxes	12,000
		Payment of management fee	22,000
		Payment of utilities	2,640
		Withdrawal by owner	500,000
Balance	1,233,360

aNALYZE

I. Receive Investment by Owner

(1) IDENTIFY

Fastforward receives $1,500,000 in cash from Joan Taylor as

an equity contribution to the company

(4) POST

Cash

101

(2) ANALYZE

Assets

Liabilities

Equity

(1)

1,500,000

Cash

Joan Taylor, Equity

+1,500,000

Joan Taylor, Equity

301

(1)

1,500,000

(3) RECORD

Date

Account titles and explanation

Debit

Credit

(1)

Cash

101

1,500,000

Joan Taylor, Equity

301

1,500,000

Sheet1 (4)

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	Joan Taylor, Withdraw	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000			171,000		(45,730)
(11	)		(500,000)		- 0	+	- 0	+	- 0		- 0		- 0		- 0	- 0		(500,000)	- 0	- 0	- 0
New Bal.	784,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000	(500,000)		171,000		(45,730)
	$4,588,360								$4,588,360
					0.1538461538		700
					76923.0769230769		0.1428571429		7.1428571429

															3230
															2640
															590

Sheet1 (3)

Assets						=			Liabilities			+	Equity
	Cash	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,321,000		507,000		3,293,000		250,000		200,000		3,000,000		$1,500,000		171,000
(7	)	(2,640)	+	- 0	+	- 0		590		- 0		- 0		- 0	- 0	- 0		(3,230)
New Bal.	1,318,360		507,000		3,293,000		250,590		200,000		3,000,000		1,500,000		171,000		(3,230)
	$5,118,360						$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429		7.1428571429
													3230
													2640
													590

Sheet5

Assets								=			Liabilities			+	Equity
	Cash	+	Prepaid Expense	+	Land	+	Building		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,284,360		$ 4,000		507,000		3,293,000		260,590		200,000		3,000,000		1500000		171,000		(43,230)
(10	)		- 0		- 0	+	- 0	+	- 0		2,500		- 0		- 0		- 0	- 0	- 0	(2,500)
New Bal.	1,284,360		4,000		507,000		3,293,000		263,090		200,000		3,000,000		1,500,000		171,000		(45,730)
	$5,088,360								$5,088,360

Sheet1 (2)

Assets								=			Liabilities			+	Equity
	Cash	+	Land	+	Building	+	SL Rent		Accounts Payable	+	Security Deposits	+	Mortgage		Joan Taylor, Equity	+	Revenue	-	Expenses
Old Bal.	$ 1,258,000		507,000		3,293,000		51,000		260,000		200,000		3,000,000		1,500,000		171000		-22000
(7	)	(22,000)	+	- 0	+	- 0		- 0		10,000		- 0		- 0		- 0	- 0	- 0		(22,000)
New Bal.	1,236,000		507,000		3,293,000		51,000		270,000		200,000		3,000,000		1,500,000		171,000		(44,000)
	$5,109,000								$5,109,000
			0.1538461538		700
			76923.0769230769		0.1428571429				7.1428571429

Sheet1

Assets								=	Liabilities			+	Equity
	Cash		Deposits		Land		Building		Security Deposits		Mortgage		Joan Taylor, Equity
Old Bal.	$ 1,450,000	+	50,000	+		+		=					$1,500,000
(3	)	(250,000)	+	(50,000)	+	500,000	+	3,000,000		200,000	+	3,000,000		- 0
New Bal.	1,200,000		- 0		500,000		3,000,000		200,000		3,000,000		$1,500,000
	$4,700,000								$4,700,000