Question

PLEASE USE THESE SAME EXACT NUMBERS

Sue Jantz started a business in August 20-- called Jantz Plumbing Service. Jantz hired a part-time college student as an administrative assistant.

Refer to the trial balance on August 31, 20-- for Jantz Plumbing Service:

Jantz Plumbing Service

UNADJUSTED TRIAL BALANCE

August 31, 20--

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	20,200.00
2	Accounts Receivable	2,700.00
3	Office Supplies	300.00
4	Prepaid Insurance	800.00
5	Plumbing Equipment	6,000.00
6	Van	8,000.00
7	Accounts Payable		4,500.00
8	Sue Jantz, Capital		30,000.00
9	Sue Jantz, Drawing	3,000.00
10	Service Fees		9,800.00
11	Rent Expense	700.00
12	Wages Expense	500.00
13	Phone Expense	100.00
14	Advertising Expense	2,000.00
15	Totals	44,300.00	44,300.00

Sue Jantz invested $30,000 of cash in the business and withdrew $3,000 of cash during the month.

Required:

1.	Prepare an income statement for Jantz Plumbing Service for the month ended August 31, 20--.
2.	Prepare a statement of owner’s equity for Jantz Plumbing Service for the month ended August 31, 20--.
3.	Prepare a balance sheet for Jantz Plumbing Service as of August 31, 20--.

Answer 1

1) Income statement

Revenue
Service fees		9800
Expenses
Rent expense	700
Wages expense	500
Phone expense	100
advertising expense	2000
Total expense		3300
Net operating income		6500

2) Statement of owner's equity

Beginning Sue Jantz, Capital	30000
Add: Net income	6500
	36500
Less:  Sue Jantz, Drawing	-3000
Ending Sue Jantz capital	33500

3) Balance sheet

Assets
Current assets
Cash	20200
Accounts Receivable	2700
Office supplies	300
Prepaid Insurance	800
Total current assets		24000
Non current assets
Plumbing Equipment	6000
Van	8000
Total Non current assets		14000
Total Assets		38000
Liabilities and Owner's equity
Current liabilities
Account payable		4500
Long term liabilities
Total liabilities		4500
Owner's equity		33500
Total liabilities and owner's equity		38000