Question

Sanchez Mechanic Services prepared the following work sheet for the year ended March 31, 20--.

Required:

1. Complete the work sheet. If no amount is required, leave the entry box blank.

Sanchez Mechanic Services
Work Sheet
For Year Ended March 31, 20--
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash	7,300.00				7,300.00						1
2	Accounts Receivable	1,520.00				1,520.00						2
3	Supplies	855.00			(e) 445.00	410.00						3
4	Prepaid Insurance	2,360.00			(a) 535.00	1,825.00						4
5	Equipment	10,200.00				10,200.00						5
6	Accumulated Depreciation, Equipment		4,105.00		(b) 455.00		4,560.00					6
7	Truck	19,060.00				19,060.00						7
8	Accumulated Depreciation, Truck		4,750.00		(c) 510.00		5,260.00					8
9	Accounts Payable		2,140.00				2,140.00					9
10	J. Sanchez, Capital		21,550.00				21,550.00					10
11	J. Sanchez, Drawing	3,720.00				3,720.00						11
12	Fees Earned		18,450.00				18,450.00					12
13	Salary Expense	1,950.00		(d) 410.00		2,360.00						13
14	Advertising Expense	1,385.00				1,385.00						14
15	Truck Operating Expense	1,025.00				1,025.00						15
16	Utilities Expense	1,415.00				1,415.00						16
17	Miscellaneous Expense	205.00				205.00						17
18		50,995.00	50,995.00									18
19	Insurance Expense			(a) 535.00		535.00						19
20	Depreciation Expense, Equipment			(b) 455.00		455.00						20
21	Depreciation Expense, Truck			(c) 510.00		510.00						21
22	Salaries Payable				(d) 410.00		410.00					22
23	Supplies Expense			(e) 445.00		445.00						23
24				2,355.00	2,355.00	52,370.00	52,370.00					24
25	Net Income											25
26												26

2. Prepare an income statement.

Sanchez Mechanic Services
Income Statement
For Year Ended March 31, 20--
Revenue:
		$
Expenses:
	$
Total Expenses
Net Income		$

3. Prepare a statement of owner's equity. Assume that there was an additional investment of $8,250 on March 13.

Sanchez Mechanic Services
Statement of Owner's Equity
For Year Ended March 31, 20--
		$
	$
Subtotal	$
		$

4. Prepare a balance sheet.

Sanchez Mechanic Services
Balance Sheet
March 31, 20--
Assets
		$
	$
	$
Total Assets		$
Liabilities
	$
Total Liabilities		$
Owner's Equity
Total Liabilities and Owner's Equity		$

Answer 1

• Requirements asked

Sanchez Mechanic Services
Work Sheet
For Year Ended March 31, 20--
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash	$7,300				$7,300				$7,300		1
2	Accounts Receivable	$1,520				$1,520				$1,520		2
3	Supplies	$855			(e) 445.00	$410				$410		3
4	Prepaid Insurance	$2,360			(a) 535.00	$1,825				$1,825		4
5	Equipment	$10,200				$10,200				$10,200		5
6	Accumulated Depreciation, Equipment		$4,105		(b) 455.00		$4,560				$4,560	6
7	Truck	$19,060				$19,060				$19,060		7
8	Accumulated Depreciation, Truck		$4,750		(c) 510.00		$5,260				$5,260	8
9	Accounts Payable		$2,140				$2,140				$2,140	9
10	J. Sanchez, Capital		$21,550				$21,550				$21,550	10
11	J. Sanchez, Drawing	$3,720				$3,720				$3,720		11
12	Fees Earned		$18,450				$18,450		$18,450			12
13	Salary Expense	$1,950		(d) 410.00		$2,360		$2,360				13
14	Advertising Expense	$1,385				$1,385		$1,385				14
15	Truck Operating Expense	$1,025				$1,025		$1,025				15
16	Utilities Expense	$1,415				$1,415		$1,415				16
17	Miscellaneous Expense	$205				$205		$205				17
18		$50,995	$50,995									18
19	Insurance Expense			(a) 535.00		$535		$535				19
20	Depreciation Expense, Equipment			(b) 455.00		$455		$455				20
21	Depreciation Expense, Truck			(c) 510.00		$510		$510				21
22	Salaries Payable				(d) 410.00		$410				$410	22
23	Supplies Expense			(e) 445.00		$445		$445				23
24				$2,355	$2,355	$52,370	$52,370	$8,335	$18,450	$44,035	$33,920	24
25	Net Income							$10,115			$10,115	25
26	TOTALS							$18,450	$18,450	$44,035	$44,035

Sanchez Mechanic Services
Income Statement
For Year Ended March 31, 20--
Revenue:
Fees Earned		$18,450
Expenses:
Salary Expense	$2,360
Advertising Expense	$1,385
Truck Operating Expense	$1,025
Utilities Expense	$1,415
Miscellaneous Expense	$205
Insurance Expense	$535
Depreciation Expense, Equipment	$455
Depreciation Expense, Truck	$510
Supplies Expense	$445
Total Expenses		$8,335
Net Income		$10,115

Sanchez Mechanic Services
Statement of Owner's Equity
For Year Ended March 31, 20--
J. Sanchez, Capital-Beginning		$13,300
Additional Investment	8250
Net Income	$10,115
Subtotal	$18,365
Less: J. Sanchez, Drawings	$3,720
		$14,645
J. Sanchez, Capital-Ending		$27,945

Sanchez Mechanic Services
Balance Sheet
March 31, 20--
Assets
Cash		$7,300
Accounts Receivable		$1,520
Supplies		$410
Prepaid Insurance		$1,825
Equipment	$10,200
Accumulated Depreciation, Equipment	($4,560)	$5,640
Truck	$19,060
Accumulated Depreciation, Truck	($5,260)	$13,800
Total Assets		$30,495
Liabilities
Accounts Payable	$2,140
Salaries Payable	$410
Total Liabilities		$2,550
Owner's Equity
J. Sanchez, Capital		$27,945
Total Liabilities and Owner's Equity		$30,495