April 1,2004

Assets Expenses

Equipment
and Merchandise Accounts Rental Prepaid Cost of Rent Interest Operating Depreciation
Cash Furniture Inventory Receivable Deposit Rent Goods Sold Expense Expense Expense Expense =
Beg Bal 1,200,000 =
1a (180,000) 90,000 30,000 60,000 =
1b (180,000) 210,000 =
2 (100,000) 500,000 =
3 (200,000) 600,000 =
4 (100,000) =
5a 600,000 =
5b (300,000) 300,000 =
6 (174,000) 189,000 =
7a 560,000 =
7b (280,000) 280,000 =
8a (795,000) =
8b 1,000
9 90,000 =
10 80,000 =
11 (60,000) =
91,000 500,000 20,000 560,000 90,000 30,000 580,000 270,000 1,000 189,000 90,000 =
Zero out (580,000) (270,000) (1,000) (189,000) (90,000) =
91,000 500,000 20,000 560,000 90,000 30,000 0 0 0 0 0 =
1,291,000 =
 Capital Revenues Liabilities Contra-Assets

Notes Accounts Rent Interest Accumulated

AA Capital BB Capital CC Capital Sales Payable Payable Payable Payable Depreciation
400,000 400,000 400,000 1,200,000 = 1,200,000
0 = 0
30,000 30,000 = 30,000
400,000 400,000 = 400,000
400,000 400,000 = 400,000
(100,000) -100,000 = -100,000
600,000 600,000 = 600,000
0 = 0
15,000 15,000 = 15,000
560,000 560,000 = 560,000
0 = 0
(390,000) (405,000) -795,000 = -795,000
1,000 1,000 1,000
90,000 90,000 = 90,000
80,000 80,000 = 80,000
(20,000) (20,000) (20,000) -60,000 = -60,000
380,000 360,000 380,000 1,160,000 10,000 10,000 30,000 1,000 90,000 2,421,000 = 2,421,000
10,000 10,000 10,000 (1,160,000) -1,130,000 = -1,130,000
390,000 370,000 390,000 0 10,000 10,000 30,000 1,000 90,000 1,291,000 = 1,291,000
1,291,000
 Select Boutique Shop
Income Statement
as of December 31, 2004

Sales 1,160,000
Less: Cost of Goods Sold 580,000
Gross Profit 580,000

Less: Expenses
Operating Expense 189,000
Rent Expense 270,000
Depreciation Expense 90,000 549,000
Operating Income 31,000

Less: Interest Expense 1,000

Net Profit 30,000
 Select Boutique Shop
Balance Sheet
December 31, 2004

ASSETS LIABILITIES AND STOCKHOLDER'S EQUITY

Current Assets Current Liabilities
Cash 91,000 Accounts Payable 10,000
Accounts Receivable 560,000 Notes Payable 10,000
Prepaid Rent 30,000 Interest Payable 1,000
Rental Deposit 90,000 Rent Payable 30,000
Merchandise Inventory 20,000 Total Current Liabilities
Total Current Assets 791,000
Stockholder's Equity
Non-Current Assets AA Capital 390,000
Equipment and Furniture 500,000 BB Capital 370,000
Less: Accumulated Depreciation 90,000 CC Capital 390,000
Total Non-Current Assets 410,000

Total Assets 1,201,000 Total Equity

OLDER'S EQUITY

51,000

1,150,000

1,201,000
 Select Boutique Shop
as of December 31, 2004
Contra-
Assets Expenses Capital Rev Liabilities Assets
Cost of Rent Oper AA BB CC
C E/F M/I A/R R/D P/R G/S Exp I/E Exp Dep Exp = Cap Cap Cap S N/P A/P R/P I/P Acc Dep
Beg
Bal 1,200 = 400 400 400 1,200 = 1,200
1a (180) 90 30 60 = 0 = 0
1b (180) 210 = 30 30 = 30
2 (100) 500 = 400 400 = 400
3 (200) 600 = 400 400 = 400
4 (100) = (100) -100 = -100
5a 600 = 600 600 = 600
5b (300) 300 = 0 = 0
6 (174) 189 = 15 15 = 15
7a 560 = 560 560 = 560
7b (280) 280 = 0 = 0
8a (795) = (390) (405) -795 = -795
8b 1 1 1 1
9 90 = 90 90 = 90
10 80 = 80 80 = 80
11 (60) = (20) (20) (20) -60 = -60
91 500 20 560 90 30 580 270 1 189 90 = 380 360 380 1,160 10 10 30 1 90 2,421 = 2,421
Zero (580) (270) (1) (189) (90) = 10 10 10 (1,160) -1,130 = -1,130
out
91 500 20 560 90 30 0 0 0 0 0 = 390 370 390 0 10 10 30 1 90 1,291 = 1,291
1,291 = 1,291