Question

Balance sheet and income statements amounts as of December 31, 2008 for Lesley’s Tutoring Service are listed below. Prepare a balance sheet and income statement in good form.

Supplies                                        $1,000                    Revenues     $23,000

Rent expense                               12,000                    Cash               15,000

Accounts payable                           9,000                    Drawings          1,000

Accounts receivable                       3,000                    Notes payable 1,000

Depreciation expense                    5,000                    Equipment        6,000

Supplies expense                           2,000                    Building           16000

Inventory                                         1,800                    Tax payable        960

Prepaid Rent                                 1,500                     Lesley, Capital                                                                                                     ?

Answer 1

Income Statement as on December 31,2008	Amount $	Amount $
Sales Revenue		23,000
Operating Expenses
Rent Expenses	12,000
Depreciation Expense	5,000
Supplies Expense	2,000
Operating Expenses		(19,000)
Net operating income		4,000

Balance Sheet as on December 31,2008	Amount $	Amount $
Current Assets
Cash	15,000
Accounts Receivable	3,000
Prepaid Rent	1,500
Inventory	1,800
Total Current Assets		21,300
Plant, Property and Equipment
Equipment	6,000
Building	16,000	22,000
Total Assets		41,300
Current Liabilities
Accounts Payable	9,000
Note Payable	1,000
Tax Payable	960
Total Current Liabilities		10,960
Lesley capital
Capital as on 1-1-2008	27,340
Less: Drawings	(1,000)
Add: Current year Net income	4,000
capital of Lesley as on 31-12-2008		30,340
Total liabilities and capital		41,300