Question

Auburn Company Worksheet (partial)

For the Month Ended April 30, 2020

Adjusted Trial Balance Income Statement Balance Sheet

Account Titles Dr. Cr. Dr. Cr. Dr. Cr.

Cash 10,000

Accounts Receivable 7,840

Prepaid Rent 2,280

Equipment 23,050

Accumulated Depreciation—Equip. 4,900

Notes Payable 5,700

Accounts Payable 4,920

Owner’s Capital 27,960

Owner’s Drawings 3,650

Service Revenue 15,590

Salaries and Wages Expense 10,840

Rent Expense 760

Depreciation Expense 650

Interest Expense 57

Interest Payable 57

Totals 59,127 59,127

Worksheet data for auburn company are presented, the owner did not make any additional investments in the business in April.

Prepare an income statement, an owner's equity statement, and a classified balance sheet.

Jerry J. Weygandt; Paul D. Kimmel; Donald E. Kieso. Accounting Principles, 13th Edition (Page 4-43). . Kindle Edition.

Answer 1

Income statement :

Revenue
Service revenue		15590
Expense
Salary and wages expense	10840
Rent expense	760
Depreciation expense	650
Interest expense	57
Total expense		12307
Net income		3283

Statement of owner;s equity

Beginning balance of owner's capital	27960
Add: Net income	3283
Less: Owner's drawing	-3650
Ending balance of owner's capital	27593

Balance sheet

Assets
Current assets
Cash	10000
Account receivable	7840
Prepaid rent	2280
Total current assets		20120
Non Current assets
Equipment	23050
Less: Accumulated Depreciation—Equip.	-4900	18150
Total Assets		38270
Liabilities and owner's equity
Current liabilities
Account payable	4920
Interest payable	57
Total current liabilities		4977
Long term liabilities
Notes payable		5700
Total liabilities		10677
Owner's equity
Owner's capital		27593
Total liabilities and owner's equity		38270