In the First Month of Operations (April Year 1) of the QuickClean

question 101

Essay

In the first month of operations (April Year 1) of the QuickClean Company, a service business, the following events occurred.
events occurred.

a. Issued stock for $100,000; 20,000 shares with a $1 par value.
b. Purchased equipment with a useful life of ten years for $12,000.
c. Purchased a building with a useful life of 20 years for $24,000.
d. Bought office supplies for $2,400. Supplies are expected to last one year.
e. Paid salaries of $10,000.
f. Borrowed $15,000 from bank on last day of the month. 12% interest rate payable in 90 days.
g. Sold services for $20,000 on account.
h. Collected $15,000 of receivables.
i. Recorded expense accruals of $4,000 at end of month.

Required:
Prepare a balance sheet and statement of cash flow using the indirect method for the first month of operations.

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Definitions:

Risperdal

A brand name for risperidone, an antipsychotic medication used to treat various mental health conditions.

Positive Symptom

Features that are present in individuals with a condition but are absent in healthy individuals, such as hallucinations or delusions often seen in schizophrenia.

Hallucinations

Experiencing sights, sounds, or other sensations that are not present or not perceived by others.

Antipsychotic Medications

Drugs essentially used to manage psychosis, including delusions, hallucinations, and disorders like schizophrenia.