Yearly Ledger Changes

Account Year 0 Year 1 Year 2

Cash 96,000 (24,850)
Inventory 8,000 20,450
PP&E 10,000 5,000
Accounts Payable 10,000 (3,000)
Paid-In Capital 100,000 -
Revenue 68,000 111,250
COGS 34,000 52,650
Operating Expenses 30,000 55,000
Depreciation Expense 1,000 1,500
Accumulated Depreciation (1,000) (1,500)

Balance Sheet
Account Year 0 Year 1 Year 2
Assets
Cash 96,000 71,150
Inventory 8,000 28,450
PP&E 10,000 15,000
Accumulated Depreciation (1,000) (2,500)
Total Assets 113,000 112,100

Liabilities & Equity

Accounts Payable 10,000 7,000
Paid-In Capital 100,000 100,000
Retained Earnings 3,000 5,100
Total Liabilities & Equity 113,000 112,100
 Income Statement
Account Year 0 Year 1 Year 2
Revenue 68,000 111,250
COGS 34,000 52,650
Gross Profit 34,000 58,600
Operating Expenses 30,000 55,000
EBITDA 4,000 3,600
Depreciation Expense 1,000 1,500
EBIT 3,000 2,100
Net Income 3,000 2,100

Cash Flow Statement

Account Year 0 Year 1 Year 2
Net Income 3,000 2,100
Depreciation 1,000 1,500
Change in Inventory (8,000) (20,450)
Change in Accounts Payable 10,000 (3,000)
Total Operating Cash Flows 6,000 (19,850)

Purchase of PP&E (10,000) (5,000)

Total Investing Cash Flows (10,000) (5,000)

Increase in Paid-In Capital 100,000 -

Total Financing Cash Flows 100,000 -

Total Cash Flows 96,000 (24,850)

Beginning Cash - 96,000
Ending Cash 96,000 71,150
 Journal
Debited Account Credited Account Debit Credit
Cash 100,000
Paid-In Capital 100,000
PP&E 10,000
Cash 10,000
Inventory 30,000
Cash 30,000
Inventory 12,000
Cash 12,000
Cash 48,000
COGS 24,000
Revenue 48,000
Inventory 24,000
Cash 20,000
COGS 10,000
Revenue 20,000
Inventory 10,000
Operating Expenses 30,000
Cash 20,000
Accounts Payable 10,000
Depreciation Expense 1,000
Accumulated Depreciation 1,000

Total 285,000 285,000

 Ledger
Account Usual Balance Total Debits
Cash Debit 168,000
Inventory Debit 42,000
PP&E Debit 10,000
Accounts Payable Credit -
Paid-In Capital Credit -
Revenue Credit -
COGS Debit 34,000
Operating Expenses Debit 30,000
Depreciation Expense Debit 1,000
Accumulated Depreciation Debit -
Total 285,000
dger
Total Credits Change from Previous Year
72,000 96,000
34,000 8,000
- 10,000
10,000 10,000
100,000 100,000
68,000 68,000
- 34,000
- 30,000
- 1,000
1,000 (1,000)
285,000
 Journal
Debited Account Credited Account Debit Credit
Accounts Payable 10,000
Cash 10,000
PP&E 5,000
Cash 5,000
Inventory 42,000
Cash 42,000
Inventory 17,100
Cash 17,100
Inventory 14,000
Cash 14,000
Operating Expenses 55,000
Cash 48,000
Accounts Payable 7,000
Depreciation Expense 1,500
Accumulated Depreciation 1,500
Cash 4,000
COGS 2,000
Revenue 4,000
Inventory 2,000
Cash 11,250
COGS 5,250
Revenue 11,250
Inventory 5,250
Cash 60,000
COGS 28,000
Revenue 60,000
Inventory 28,000
Cash 24,000
COGS 11,400
Revenue 24,000
Inventory 11,400
Cash 12,000
COGS 6,000
Revenue 12,000
Inventory 6,000
Total 308,500 308,500
 Ledger
Account Usual Balance Total Debits
Cash Debit 111,250
Inventory Debit 73,100
PP&E Debit 5,000
Accounts Payable Credit 10,000
Paid-In Capital Credit -
Revenue Credit -
COGS Debit 52,650
Operating Expenses Debit 55,000
Depreciation Expense Debit 1,500
Accumulated Depreciation Debit -
Total 308,500
dger
Total Credits Change from Previous Year
136,100 (24,850)
52,650 20,450
- 5,000
7,000 (3,000)
- -
111,250 111,250
- 52,650
- 55,000
- 1,500
1,500 (1,500)
308,500