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Extreme Edge, Inc.

Financial Statement Articulation

Cash Reconciliation:

Accounts	2013	2012
Beginning cash balanceJanuary 1	$30	$0
+/- net change in cash (per the statement of cash flows)	15	30
Ending cash balance (per the December 31 balance sheet)	$45	$30

1. Reconcile cash for 2014.

Contributed Capital Reconciliation (#1):

Accounts	2013	2012
Beginning contributed capitalJanuary 1	$420	$0
+ Common stock issued (per the statement of shareholders equity)	8	42
+ Additional paid in capital (per the statement of shareholders equity)	72	378
Ending contributed capital (per the December 31 balance sheet)	$500	$420

2. Reconcile contributed capital for 2014.

Contributed Capital Reconciliation (#2):

Accounts	2013	2012
Beginning contributed capitalJanuary 1	$420	$0
+ Cash from the issue of common stock (per the statement of cash flows)	80	420
Ending contributed capital (per the December 31 balance sheet)	$500	$420

3. Reconcile contributed capital for 2014.

Retained Earnings (#1):

Accounts	2013	2012
Beginning retained earningsJanuary 1	$25	$0
+ Net income (per the statement of shareholders equity)	21	33
- Dividends (per the statement of shareholders equity)	(2)	(8)
Ending retained earnings (per the December 31 balance sheet)	$44	$25

4. Reconcile retained earnings for 2014.

Retained Earnings (#2):

Accounts	2013	2012
Beginning retained earningsJanuary 1	$25	$0
+ Net income (per the income statement)	21	33
- Dividends (per the statement of cash flows)	(2)	(8)
Ending retained earnings (per the December 31 balance sheet)	$44	$25

5. Reconcile retained earnings for 2014.

Equipment (#1):

Accounts	2013	2012
Purchase of equipment (per the statement of cash flows)	$100	$500
Plus: net or book value of equipmentfrom previous December 31	400	0
Net or book value of equipmentJanuary 1	500	500
Less: Depreciation expense (per the income statement)	(120)	(100)
Net or book value of equipment (per the December 31 balance sheet)	$380	$400

6. Reconcile equipment for 2014.

Equipment (#2):

Accounts	2013	2012
Purchase of equipment (per the statement of cash flows)	$100	$500
Plus: cost of previous years equipment purchases	500	0
Total cost of equipmentJanuary 1	600	500
Less: Accumulated depreciation (per the income statements)*	(220)	(100)
Net or book value of equipment (per the December 31 balance sheet)	$380	$400

* accumulated depreciation for 2013 of $220 (2012 depreciation expense of $100 + 2013 depreciation

expense of $120)

7. Reconcile equipment for 2014.

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