Question

Based on the data below, complete a formal income statement, statement of owner's equity, and formal...

Based on the data below, complete a formal income statement, statement of owner's equity, and formal balance sheet:

Income Statement Section of Work Sheet:

Service Fees: 20,000 cr. balance

Supplies Expense: 400 dr. balance

Insurance Expense: 800 dr. balance

Depreciation Expense: 20,000 dr. balance

Wage Expense: 4000 dr. balance

Rent Expense: 12,000 dr. balance

Utilities Expense: 10,000 dr. balance

Net Loss = 27,200

Balance Sheet Section of Worksheet:

Cash: 40,000 dr. balance

Supplies: 2000 dr. balance

Prepaid Insurance: 2000 dr. balance

Equipment: 20,000 dr. balance

Accumulated Depreciation: 2000 cr. balance

Accounts Payable: 42,200 cr. balance

Wages Payable: 4000 cr. balance

Capital: 45,000 cr. balance

Drawing: 2000 dr. balance

Homework Answers

Answer #1

Income statement:

Particulars Amt (Cr) Amt(Cr)

Service Fees 20,000

Less

Wage Expense 4,000

Supplies Expense 400

Gross Profit 15,600

Less:

Oprating Expense

Insurance Expense 800

Depreciation Expense 20,000

Rent Expense 12,000

Utilities Expense    10,000

Net Loss   27,200

Owner's Equity:

Opening balance =45,000 Cr

(-)Drawings =   2000 Cr

43,000 Cr

Balance Sheet:

     

Particulars Amt(Cr) Particulars Amt(Cr)
Capital 43,000

Equipment-AD

(20,000-2,000)

18,000
Wages payable 4,000 Insurance prepaid 2,000
accounts payable 42,200 Debtors 2,000
Cash 40,000
Profit and Loss 27,200
89,200 89,200
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