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planned. If not, then this may give them a signal that problems exist so they should take appropriate actions. The profit plan, if reasonable, can motivate them to reach their goals and objectives.
2.
(1) dr Cash 80,000.00
dr Patent 120,000.00
cr Capital Stock 200,000.00
(2) dr Incorporation Cost 2,500.00
cr Cash 2,500.00
(3) dr Equipment 85,000.00
cr Cash 85,000.00
(4) dr Out of pocket cost 25,000.00
cr Cas 25,000.00
(5) dr Component parts inventory (Raw Mat'ls) 212,100.00
cr Cash 212,100.00
(6) dr Cash 30,000.00
cr Bank loans 30,000.00
Loans will be repaid at the end of the year:
dr Bank loans 30,000...
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