Question: SPRING TRAINING INC. Balance Sheet December 31, 2017

 ASSETS                                                         LIABILITIES

Cash                              $25,000             Accounts Payable      $50,000

Accounts Rec.                   5,000             Mortgage Payable       50,000

Inventory                   14,000

Supplies                      2,000             Total Liabilities                        $100,000

Land                                18,000

Buildings      $220,000                             STOCKHOLDER EQUITY

    Acc. Depr. <20,000>200,000       

Equipment     200,000                             Common Stock  $5 Par      $30,000

    Acc. Depr  <14,000>186,000              Excess of Par                   $300,000

Retained Earnings     20,000

 Total Equity                              $350,000

 TOTAL ASSETS        $450,000              TOTAL LIAB. & EQUITY    $450,000

Jan. 2] Sold 200,000 shares of common stock for $2,600,000. debit

Jan. 3] Purchased on account $40,000 of inventory for resale to customers. Terms were 5/60net 90. debit

Jan. 10] Paid $5,000 for promotion & marketing expenses. Promotion would run through the month of January 2018.

Jan. 15] Purchased a 3-year insurance policy for $3,600 in cash. Effective date is January 1, 2018 to December 31, 2020.

Jan. 27] Paid in full for purchases acquired January 3, 2018. credit

Feb. 1] Paid $3,000 as a mortgage payment. The balance on the mortgage is listed on the balance sheet dated December 31, 2017. Interest Rate is 8 per cent.

Feb. 10]Sales revenue generated was $400,000. $10,000 in cash received this date the balance on account. Terms 4/60 net 60 days.

Feb. 27] Paid wages for the months of January and February 2018. Total wages that was paid for the two months was $40,000.

Mar. 1]Acquired $200,000 of equipment. Useful life is 10 years. Signed a note (12%) for entire amount.

Mar. 1]Declared a dividend of 50 cents per share.

Mar. 1] Customer returned $25,000 of items acquired on February 10, 2018.

Mar. 1]Signed a lease for warehouse space rental period is from April 1, 2018 to

December 31, 2018. A $10,000 deposit was paid on March 1.

Mar. 1]Borrowed $80,000, and signed a note for this amount at 10%.

Mar. 3]Paid the February Mortgage payment only this time $7,000 was paid.

Mar. 6]Sales on account to customers amounted to $200,000. Terms are 10/60 net 90 days.

Mar. 15]Received full amount due from the February 10 sale.

Mar. 15] Customer returned items that were sold for $35,000 on March 6, 2018.

Mar. 17] Purchased $40,000 of inventory and terms were 8/30 net 90. This was a cash purchase.

Mar. 30] Supplies were now determined to be $500.

Mar. 31] Customer paid in full for the March 6 sale.

Mar. 31] Spring Training paid $20,000 in wages for the month of March.

Mar. 31] Paid $30,000 on the equipment note entered on March 1, 2018.

OTHER INFORMATION

1. Tax rate is 20%.

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

4. Building has useful life of 20 years.

5. Ending Inventory for Spring Training Inc. is $20,000.

Prepare a set of financial statements for the quarter ending MARCH 31, 2018