Question

1. The following is selected financial information for Edison Bank for the year ended December 31, 2015 Net Income (Revenue) $80,000 Owner, Withdrawals 12,500 Owner, Capital (1/1/2015) 70,000 Required Prepare the 2015 Statement of owner’s equity

2. Identify the following users as either External users or Internal users of financial information of a business Customers Suppliers Managers IRS Chief Financial Officer Shareholders Analysts Loan Lenders

3. Which of the following would NOT be a current asset? a. Accounts Receivable b. Land c. Prepaid Insurance d. Supplies Extract a Trial Balance from the following Ledger Accounts extracted from the records of Nagy on March 15,2016. Capital Account Cash 9,000 Withdrawals Cash 500 Service Revenues Account Receivable 12,000 Cash Capital 9,000 Withdrawal 500 Account Receivable 2,000 Account Receivable Service Revenue 12,000 Cash 2,000

4. What is Equity? a. Cash from the business b. Liability of a business c. Owner’s claim on total assets d. Owner’s claim on total liabilities

5. Accounts Payables, Accruals and notes payables are listed on balance sheet as a. Accrued Liabilities b. Short-term liabilities c. Accumulated liabilities d. Non- current liabilities

6. Prepare an income statement from the following balances extracted from the books of Mayo Deli at the close of the year on December 31, 2015 Sales Revenue 200,000 Cost of Sales 105,000 Rent Expense 11,200 Salary Expense 30,000 Advertising Expense 500 Other Expenses 3,500

Answer 1

Dear student, only one question is allowed at a time. I am answering the first question

	Statement of owner’s equity
Calculations	Particulars	Amount $
A	Opening Capital (01/01/2015)	70,000
B	Net Income	80,000
C	Withdrawals	12,500
D = A + B - C	Closing Capital	137,500