Reference no: EM132148512

Question: Task 1: On Dec 31, 2015 Paula, Peter and Phil started the 3p.com company. The idea is to buy a newly developed easily useable heart monitor device and resell it to elderly private patients. The device is called YouMon. In case of an emergency it will rapidly connect to the nearest ambulance via a mobile phone.

• Each of the three founders paid in € 45.000 equity capital in cash.

• In addition, Paula brought in new a building which serves to hold the inventory (value of building: € 180.000; value of land: € 70.000; expected life time 50 years)

• Peter provided the company with a 2-year old van currently valued at € 22.000 (expected remaining use: 3 years; assumed value in 3 years: € 5.000).

• Phil attributed office furniture and appliances worth € 24.000 (expected use: 5 years; scrap value: € 0).

• Together, they acquire a 2-year loan from NaughtyBank (amount € 40,000, interest 5% per quarter).

• Paula buys 500 YouMon units for € 150 each plus shipment costs of € 500 (payable next month).

Insert another table into the excel file you received and record the above accounting events in a systematic manner. Show the Balance Sheet of 3p.com for the year end 2015 in another separate table. (No Income Statement or Cash Flow Statement required).

Task 2: During the first quarter of 2016 the following events take place at 3p.com:

• On Jan. 1, Phil rents a shop located at the heart of the city (monthly rent € 10,000; payable at first day each month) and Peter buys shop furniture for € 29,000 (transportation costs € 200 and installment costs € 800; expected use 5 years; scrap value € 0).

• During the quarter, 3p.com orders 1,400 additional YouMon units at € 150 (shipment € 500) to be paid in April.

• It sells 1,800 units at a price of € 350 during the quarter (cash payment).

• Gasoline for deliveries costs € 600 per month (paid in cash).

• As the business runs well, they hire a sales clerk (starting Feb 1; € 2000 monthly wage incl. everything; paid in cash) and buy an additional delivery van for € 33,000 cash on March, 1 (expected use: 5 years; value in 5 years: € 3.000).

Prepare the Balance Sheet for 3p.com as of March 31, 2016 and their Income Statement and Cash Flow Statement for the first quarter of 2016. Don't forget taxes (25%) and think about other necessities! (Please insert another table in your Excel spreadsheet to present the three statements. Please show all necessary accounting record to produce the three statements in a separate table.)

Please note: Use an Excel file to answer the above questions. Make all calculations explicit inside the file, i.e., make all calculations INSIDE the Excel file and provide the formulas, not just the numbers. Make your spreadsheets easily understandable for a time-constrained reader. That think about how to structure your file so that it is easily readable and understandable for an outside reader. Grading is based on both "content" and "appearance".