Samples and Examples

Example of Insurance Expense J&B Inc.

NOTE 10 - INSURANCE EXPENSE

The Company is required to have two types of insurance; Contents Insurance and Errors & Omissions Insurance. Content Insurance protects inventories, equipment, and supplies. Error & Omissions Insurance is held by all professional firms and, as the name implies, protects the authors, publishers, and distributors of literary works from any so called errors, mistakes, or omissions of critical facts, etc. The premiums for each type of insurance are outlined as follows:

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Example of Common Shares and Share Capital

NOTE 24 - SHARE CAPITAL

The proposed amount of capital stock of J&B shall consist of:

AUTHORIZED:

1.   100,000 Class A Common Voting with a par value of $1.00 each

2.   Unlimited number of Classes "B", "C", and "D" Common Voting with a par value of $2,000 each

3.   Unlimited number of Classes "E", "F", and "G" Common non-voting with a par value of $1.00 each

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Calculating Weighted Averages - Complete Example

DETERMINE YOUR WEIGHTED AVERAGES

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Example of Accounts Payable Note 22

NOTE 22 - ACCOUNTS PAYABLE

The Accounts Payable balance for year one, two and three consist of the following items:

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Amortization Example note 18

NOTE 18 - AMORTIZATION OF INITIAL DEVELOPMENT COSTS

Initial Development Costs refer to the costs that must be incurred to complete the development of the Company's initial product (from January- April 200W). The Development Costs are presented below.

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Examples of Miscellaneous Expense

NOTE 15 - MISCELLANEOUS EXPENSES

Miscellaneous Expenses include such items as bank charges, services charges and other minimum costs that may occur from time to time. Miscellaneous Expenses have been forecasted at $200, $217, and $233 per month for year one , two and three respectively (rounded). As a result, the following yearly Miscellaneous Charges can be viewed under the Company's forecasted income statement.

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Example of Rent Expense for J&B Incorporated

NOTE 7 - RENT EXPENSE

J&B is estimating 1000 square feet will be needed for its facility. The cost per square foot during the first year of operations is forecasted at $10.00, resulting is a monthly rent expense of $1,000. A 5% increase in rent expense is forecasted for year two and three. The following chart illustrates the total rent expense for each of the forecasted years.

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Example of Cost of Goods Sold - Note 2

NOTE 2 - COST OF GOODS SOLD

The dollar amounts shown in the Cost of Goods Sold account has been arrived at as follows. Please note; figures are rounded to the nearest dollar.

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Example of Professional Services and Fees

NOTE 9 - PROFESSIONAL SERVICES

Professional services refer to dollars spent for accounting, marketing, legal, and other services. The majority of this budget in year one will be spent on marketing services. Moreover, the company plans to allocate $2,250 each month during the two month test phase. The remaining ten months will see the Company spend $250 for professional services. In year two and three J&B will allocate $292, and $333 per month to this budget. As a result, the total yearly budget has been forecasted as follows:

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Example of Telephone and Fax Expense

NOTE 8 - TELEPHONE AND FAX EXPENSE

Telephone and Fax Expense has been forecasted at $300, $320, & $340 per month for year's one, two and three respectively. As a result, the following yearly telephone expenses can be viewed under the forecasted financial statements.

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