Illustrated information from the journal, income statement and balance sheet reveals the lemonade stand's initial capital expenditures and the accumulated financial loss transcribed during the first season , which includes six days of receipts and expenses, which show the usual accounting methods appearing on the journal, income statements and balance sheet attached to the lemonade stand. The accounting data format establishes a proportion of the financial statements whenever the company wants to know the state of the lemonade stand's tax situation. For almost every business, a financial statement is prepared at some point during each monthly, quarterly and annual reporting period. For the purposes of the Lemonade Stand, financial statements will be prepared on the 6th day of the Season, which corresponds to the close of business period of the last day of the profit reporting period. So, for all purposes of the lemonade stand, the company's balance sheet should be aligned with its income statement. There are a few formal practices for accounting systems or methods for tracking the lemonade stand's financial situation, called cash flow. and an accrual accounting system. Cash basis accounting recognizes transactions when hard cash exchanges hands. A small business like the Lemonade Stand with relatively few transactions each month can also use this system. For the purposes of this paper, the accrual method of accounting has been used to demonstrate the lemonade stand's position. Accrual accounting realizes revenue when earned and expenses when incurred. Under the accrual method, an invoice like the store's is in the middle of the paper...... method to have more than one pitcher. Pitchers were an unnecessary purchase from the standpoint of purchasing excessive amounts of equipment. From a revenue versus expense perspective, the Lemonade position proved profitable, leaving a net profit and profit from the beginning to the end of the reporting period. Accounts payable uses half of the owner's capital, which was useful because the money was money invested to start the business, which decreased the amount of debts shown on the balance sheet. Overall, the Lemonade stand was a success. From the first to the third day, store ending balances and cash balances continue to increase. On the fourth day, the stall paid the store's account, reducing that day's revenue. On the fifth and sixth days, cash sales for those days increased and expenses decreased by 3 cents, which was minor but helpful for revenue..