1 Prepare an income statement Prepare a statement of owners

1. Prepare an income statement, Prepare a statement of owner\'s equity, Prepare a balance sheet

Debit $ 1120 11450 15100 Credit $ Accounts Titles Cash AR Equipment AP H N Capital H N Drawings NP Insurance exp Telephone (internet) exp Miscel. exp. Consultancy service revenue Salary exp Interest exp Rent Exp Prepaid Rent Total 750 14300 1000 11500 145 550 580 7000 1650 950 950 $33550 $33550

Solution

Income statement :

Prepare a statement of owner\'s equity

Prepare a balance sheet

Consulting service revenue		7000
Expenses :
Salary exp	(1650)
Interest exp	(55)
Rent exp	(950)
Misc. Exp	(580)
Telephone exp	(550)
Insurance exp	(145)	(3930)
Net income		3070