Question

The T account balances for the accounts of Rya’s Planning Services as of January 31, 2019 are listed below.

Cash	$	22,000
Accounts Receivable		18,000
Office Supplies		800
Equipment		20,000
Accounts Payable		9,880
Rya Page, Capital		29,000
Rya Page, Drawing		6,100
Planning Fees Income		34,150
Office Supplies Expense		310
Rent Expense		910
Salaries Expense		4,100
Utilities Expense		810

1. Prepare an income statement for the Rya’s Planning Services for the month ended January 31, 2019.
2. Prepare a statement of owner’s equity for Rya’s Planning Services for the month ended January 31, 2019.
3. Prepare a balance sheet for Rya’s Planning Services as of January 31, 2019.

Answer 1

1.

Rya's Planning Services
Income statement
For the month ended January 31, 2019
Revenue
Planning fees income		$ 34,150
Expenses
Office Supplies expense	$     310
Rent expense	$     910
Salaries expense	$ 4,100
Utilities expense	$     810
Total expenses		$    6,130
Net income		$ 28,020

Rya's Planning Services
Statement of Owner's Equity
As at January 31, 2019
Rya Page Capital, Beginning balance	$ 29,000
Add: Net income	$ 28,020
Less: Rya Page, Drawings	$ (6,100)
Rya Page Capital, Ending balance	$ 50,920

Rya's Planning Services
Balance Sheet
As at January 31, 2019
Assets			Liabilities and Owners equity
Current assets			Current liabilities
Cash	$ 22,000		Accounts payable		$    9,880
Accounts receivable	$ 18,000
Office supplies	$        800
Total current assets		$ 40,800	Owners Equity
Property, Plant and Equipment			Rya Page, Capital		$ 50,920
Equipment		$ 20,000
Total assets		$ 60,800	Total liabilities and owners equity		$ 60,800

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