Question

Presented here are the accounts of

Town and Country RealtyTown and Country Realty

for the year ended

DecemberDecember

Land	$10,000		Owner contribution, 2018	$36,000
Notes Payable	29,000		Accounts Payable	10,000
Property Tax Expense	2,400		Accounts Receivable	1,300
Hicks, Withdrawals	36,000		Advertising Expense	12,000
Rent Expense	8,000		Building	194,800
Salaries Expense	63,000		Cash	2,200
Salaries Payable	800		Equipment	13,000
Service Revenue	235,000		Insurance Expense	1,800
Office Supplies	9,000		Interest Expense	7,300
Hicks, Capital, Dec. 31, 2017	50,000

PrintDone

3131​,

20182018.

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Requirements

1.	Prepare Town and Country Realty'sTown and Country Realty's income statement.
2.	Prepare the statement of​ owner's equity.
3.	Prepare the balance sheet.

Requirement 1. Prepare

Town and Country Realty'sTown and Country Realty's

income statement.

		Town and Country Realty
		Income Statement
		Year Ended December 31, 2018
Revenues:
	Service Revenue
Expenses:
	Salaries Expense
	Insurance Expense
	Advertising Expense
	Rent Expense
	Interest Expense
	Property Tax Expense
		Total Expenses
Net Income

Answer 1

1. Town and Country Realty'sTown and Country Realty's Income statement

Town and Country Realty
Income Statement
Year Ended December 31, 2018
Revenues:
Service Revenue		$235,000
Expenses:
Salaries Expense	$63,000
Insurance Expense	$1,800
Advertising Expense	$12,000
Rent Expense	$8,000
Interest Expense	$7,300
Property Tax Expense	$2,400
Total Expenses		$94,500
Net Income		$140,500

2. Statement of​ Owner's Equity

A Statement of Owner's Equity shows the changes in the capital account due to contributions, withdrawals, and net income or net loss.

Town and Country Realty
Statement of Owner's Equity
For the Year Ended December 31, 2018
Hicks Capital on Dec. 31, 2017 [Jan 01, 2018]	$50,000
Add: Additional Contribution during 2018	$36,000
Net Income during 2018	$140,500
Total	$226,500
Less: Hicks, Withdrawals during 2018	$36,000
Hicks Capital on Dec 31, 2018	$190,500

3. Balance Sheet

Town and Country Realty
Balance Sheet
At December 31, 2018
Assets
Current Assets:
Cash	$2,200
Accounts Receivable	$1,300
Office Supplies	$9,000
Total Current Assets		$12,500
Fixed Assets:
Land	$10,000
Buildings	$194,800
Equipment	$13,000
Total Fixed Asasets		$217,800
Total Assets		$230,300
Liabilities and Owners Equity
Liabilities:
Notes Payable	$29,000
Accounts Payable	$10,000
Salaries Payable	$800
Total Liabilites		$39,800
Owner's Equity
Hick's Capital as on Dec 31, 2018	$190,500
Total Owners Equity		$190,500
Total Liabilities and Owners Equity		$230,300