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snackypete on Sep 04, 2010 5:21pm
Expenses Accountant starting with this
HOME WEB, INCORPORATED
(A Development Stage Company)
BALANCE SHEET
December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
ASSETS
Current assets
Cash in bank $ 7 $ 97
Non-trade receivable 1,450 1,450
Total current assets 1,457 1,547
Equipment
Coolers and equipment 40,308 40,308
Office equipment 9,841 9,841
50,149 50,149
Accumulated depreciation (9,288) (5,285)
Total equipment 40,861 44,864
Other assets
Organizational expenses 3,960
Trade name 11,000 11,000
Total other assets 11,000 14,960
Less accumulated amortization (1,584)
13,376
TOTAL ASSETS $ 53,318 $ 59,787
LIABILITIES AND SHAREHOLDERS'EQUITY
Current liabilities
Accounts payable $ 17,655 $
California Franchise Tax payable 3,116
Loan from affiliate 2,825 800
Total current liabilities 23,596 800
Shareholders' equity
Capital stock 27,507 27,497
Paid in capital 1,347,493 1,347,003
Deficit accumulated during development stage (1,345,278) 1,315,513)
Total shareholders' equity 29,722 58,987
TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY $ 53,318 $ 59,787
</TABLE>
See accompanying notes and accountant's review report
<PAGE>
HOME WEB, INCORPORATED
(A Development Stage Company)
Statement of Operations
For the years ending December 31, 1999 and 1998
<TABLE>
<CAPTION>
Deficit
Accumulated
During
Development
1999 1998 Stage
---- ---- -----
<S> <C> <C> <C>
Revenue
Sales $ 528 $ 7,265 $ 18,887
Cost of sales 523 5,193 15,091
Gross margin 5 2,072 3,796
Expenses
Advertising 7 785 856
Amortization 792 1,584
Consulting fees 5,500 4,496 11,196
Equipment rental 2,339 2,339
Depreciation 4,003 4,263 9,288
License and taxes 145 225 370
Meals and entertaininent 302 848
Office help 1,591 10,841 12,432
Office supplies 588 2,783 3,760
Postage 621 673
Travel 54 1,720 1,831
Telephone and utilities 1,030 1,243
Rent 248 900 2,348
Business start up costs 15,318 10,480 41,674
Compensation due stock issuance 1,254,500
Total expenses 27,454 41,577 1,344,942
(Loss) from operations (27,449) (39,505) (1,341,146)
Other income (expense)
Interest (50) (50)
Nondeductible penalties (716) (166) (882)
State tax expense (1,600) (800) (3,200)
Total other expenses (2,316) (1,016) (4,132)
Net loss $ (29,765) $ (40,521) $ (1,345,278)
Loss per share
of common stock $ (0.0011) $ (0.0021) $ (0.0495)
Weighted average of
shares outstanding 27,157,000 26,563,959 26,563,959
</TABLE>
See accompanying notes and accountant's report
<PAGE>
HOME WEB, INCORPORATED
(A Development Stage Company)
STATEMENT OF SHAREHOLDERS' EQUITY
December 31, 1999
<TABLE>
<CAPTION>
Deficit
Accumulated
Common stock During
Paid in Development
Shares Amount Capital Stage Total
------ ------ ------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance,
December 31, 1998 27,497,000 $ 27,497 $ 1,347,003 $ (1,315,513) $ 58,987
Common stock issued 10,000 10 490 500
Net loss for the period
ended December 31, 1999 (29,765) (29,765)
27,507,000 $ 27,507 $ 1,347,493 $ (1,345,278) $ 29,722
</TABLE>
See accompanying notes and accountant's review report
<PAGE>
HOME WEB, INCORPORATED
(A Development Stage Company)
Statement of Cash Flows-Indirect Method
For the years ending December 31, 1999 and 1998
<TABLE>
<CAPTION>
Deficit
Accumulated
During
Development
1999 1998 Stage
---- ---- -----
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (29,765) $ (40,521) $ (1,315,513)
Adjustment to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 4,003 5,055 6,869
Stock issued for services 500 1,254,500
Increase in accounts receivable (50) (1,450)
Increase in accrued liaibilities 5,141
Decrease in other assets 2,376
Increase (Decrease) in accounts payable 17,655 (5,500) 800
NET CASH PROVIDED BY OPERATING ACTIVITIES (90) (41,016) (54,794)
INVESTING ACTIVITIES
Increase in other assets 11,000 14,960
Purchase of property, plant and equipment 31,554 50,149
NET CASH USED IN INVESTING ACTIVITIES 42,554 65,109
FINANCING ACTIVITIES
Sale of common stock 83,400 120,000
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (90) (170) 97
Cash and cash equivalents at beginning of the year 97 267 0
CASH AND CASH EQUIVALENTS AT END OF YEAR 7 $ 97 97
</TABLE>
See accompanying notes and accountant's report
<PAGE>
HOME.WEB INCORPORATED
---------------------
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
December 31, 1999 and 1998
Note A: Summary of Significant Accounting Policies
- ------- ------------------------------------------
Development Stage Company
- -------------------------
Home Web, Inc. (the "Company") is a development stage company as defined in
the Financial Accounting Standards Board No. 7. The Company is devoting
substantially all, of its present efforts in securing and establishing a
new business, and although planned principal operations have commenced,
substantial revenues have yet to be realized.
Use of estimates
- ----------------
The preparation ofthe financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from these estimates,
Cash equivalents
- ----------------
For the purpose of the statement of cash flows, the company considers all
highly liquid debt instruments purchased with the original maturity of
three months or less to be cash equivalents.
Organization and Business Start Up and Amortization
- ---------------------------------------------------
Organization costs are recordod at cost. Amortization is calculated by the
straight-line metbod over a period of sixty months. Amortization for the
year ending December 31, 1998 was $792.
Income Taxes
- ------------
Income laxes are provided for the tax effects of transactions reported in
the financial statements and consist of taxes currently due plus deferred
taxes related primarily to differences between the recorded book basis and
tax basis of assets and liabilities for financial and income tax reporting.
The deferred tax assets and liabilities represent the future tax return
consequences of those differences, which will either be taxable or
deductible when tho assets and liabilities are recovered or settle.
Deferred taxes are also recognized for operating losses that are available
to offset future federal income taxes.
Common Stock
- ------------
Common stock is at $.001 par value with 50,000,000 shares authorized,
27,507,000 outstanding as of December 31, 1999 and 27,497,000 outstanding
as of December 31, 1998.
<PAGE>
HOME.WEB, INCORPORATED
----------------------
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
December 31,1999 and 1998
Stock Options
- -------------
Stock that is issued for services rendered are recorded at the fair value
of the stock in the year that the stock is given and recorded as an expense
in the same year.
Note B: Background
- ------------------
The Company was incorporated under the laws of the State of Nevada on
September 15,1995. The principal activities of the Company, from the
beginning of the development stage, have been organizational matters and
the sale of stock. The Company was formed to sell wholesale gourmet and
specialty cheese on the Internet. During the periods ending December 31,
1999 and 1998 the Company had sales and incurred expenses against those
sales, but the activity was immaterial for the purposes of SFAS No. 7.
Note C: Related Party transactions
- ----------------------------------
The Company entered into an agreement with Monterey Ventures, Inc ("MVI"),
an affiliated company and a shareholder, whereby; MVI will provide
investment banking and other consulting services to the Company. The
agreement is for $1000 of which $4,500 was paid in 1999 and $5,500 was paid
for 1998. The company also paid rent to MVI under a rental agreement $900
during the year ending December 31, 1998. Total other reimbursements to MVI
for office expenses, phone services etc. amounted to $5,790 for the year
ending December 31, 1998.
During the year 1998 the Company paid one of its founders $500 for
consulting services to the Company.
Note D: Income taxes
- --------------------
The benefit for income taxes from operations consisted of the following
components: current tax benefit of $9,000 resulting from a net loss before
income taxes, and deferred tax expenses of $9000 from a valuation allowance
recorded against the deferred tax asset resulting from net operating
losses. Net operating loss carryforward will expire in 2014.
The valuation allowance will be evaluated at the end of each year,
considering positive and negative evidence about whether the asset will be
realized. At the time, the allowance will either be increased or reduced;
reduction would result in the complete elimination of the allowance if
positive evidence indicates that the value of the deferred tax asset is no
longer required.
The income tax returns were filed without taking into consideration the
$1,254,500 deduction for the issuance of common stock for compensation of
services in the prior year. Net operating losses that are being carried
forward are
<PAGE>
HOME.WEB, INCORPORATED
----------------------
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
December 31,1999 and 1998
only the amounts that are represented by cash flows. No deferred tax asset
has been set up to book the tax benefit of the $1,254,500 stock for
services.
Note E: Public stock offering
- -----------------------------
During the period ending December 31,1998. pursuant to an exemption under
Rule 504 of Regulation D of the Securities Act of 1933, as amended (the
Act), the Company sold solely to accredited and/or sopbisticated investors,
its common stock. Each share has a par value of $.001. The stock was sold
during various times during the year to 30 different investors buying a
total 1,515,000 common shares of the Company's stock. Total proceeds, from
the offerings, as of the period ended December 31, 1998 were $83,400. There
were no sales of stock during the period ending December 31, 1999, The only
capital transaction occurring during the year ending December 31, 1999 was
the issuance of 10,000 shares of stock to corporate counsel in exchange
legal services.