Question

  The adjusted trial balance of ABC company is as follows: Dr. Cr. Cash 13,000 Acc Rec 4,500 Supplies 600 Equipment 20,000 Account payable 9,500 Owner Capital 24,000 Owner Drawing 5,000 Total revenue 20,400 Salary exp 3,200 Utility exp 2,300 Rent expense 5,300 Total $53,900 $53,900 Prepare an income statement, statement of owner equity and balance sheet.

Answer 1

ABC Company
Income Statement
Revenue:
Total Revenue		$20400
Expense:
Salary Expense	$3200
Utility Expense	$2300
Rent Expense	$5300
Total Expense		($10800)
Net Income		$9600

ABC Company
Statement of Owners Capital
Beginning balance of Owner capital	$24000
Add: Net Income	$9600
	$33600
Less: Drawings	$5000
Ending Balance of owner capital	$28600

ABC Company
Balance sheet
Assets	Amount	Liabilities & Owner Capital	Amount
Cash	$13000	Account Payable	$9500
Account Receivable	$4500	Owner’s Capital	$28600
Supplies	$600
Equipment	$20000
	$38100		$38100