Notes to the Financial Statement by Corey Somervold
The company records the cost of the property, plant, and equipment at cost value. The
depreciation method that is used is the straight-line method. The amount of accumulated
depreciation that the company had at the end of December 31, 2017, was $406.44.
Note 4 Inventory
The inventory that the company has consist of baking supplies and merchandise. The inventory is
taken periodic to keep track of the amount they have on hand. Both the baking supplies and
merchandise use the last in first out method when tracking inventory. The company had
$18,681.70 in baking supplies and $1,038.07 in merchandise inventory at the end of the 2017
Note 5 Current Liabilities
The companies account payable is the amount that the company is liable for owed to suppliers.
This is supplies purchased on credit.
The wages that are stilled owed to employees of the prior pay period.
Note 6 Long-Term Liabilities
The company has a note payable that has a 6% interest rate. This note started on Jan. 31, 2017
and is due in Feb. 1, 2019.
The company has a 5-year loan out, that was made on June 1, 2016. The terms on this loan are
that it has a 7.5% annual rate, and the interest is only until the due date.