Question

Prepare multiple step income statement and statement of changes in owner's equity for the month

1. Jan-1 The JW-Corp Received $120,000 from Investors in Exchange for 6,000 shares of Common Stock.
2. Jan-2 JW-Corp Borrowed $150,000 from SCHWAB BANK and signed a Note Due in 24 months.
3. Jan-3 JW Corp purchased Office Equipment worth $120,000 (5 year life), with a $40,000 Down payment of Cash and the remainder Due on account to Target-Corp within 9 Months.
4. Jan-4 JW Corp purchased an Office Building for $420,000 (25 year life), by making a Down payment of $60,000 and then signed a Note for the remainder Due in 18 Months to CHASE Bank.
5. Jan-5 JW Corp paid $15,000 with a check for Office Rent for the next 3 months.
6. Jan-10 JW Corp paid $4,000 with a check for Business Insurance for this month.
7. Jan-11 JW Corp provided CPA Services to the Gavilan Corp worth $138,000 and Collected $58,000 Cash and Billed them the remainder on Account.
8. Jan-15 JW-Corp received This Month’s Utility Bill from PGE for $2,000 to be paid Later.
9. Jan-16 JW-Corp received This Month’s Telephone Bill from Skype for $800 to be paid Later.
10. Jan-17 JW-Corp received a $10,000 check from Gavilan Corp on Account.
11. Jan-20 JW-Corp received a BILL for $12,000 for Legal Fees used this month to be Paid Later.
12. Jan-23 JW-Corp paid $11,000 with Checks for this Months Salaries expenses.
13. Jan-24 JW-Corp Received a $13,000 check from Gavilan Corp on Account.
14. Jan-25 JW-Corp received a $27,000 check from Garlic-Corp for Services to be Provided Later.
15. Jan-26 JW-Corp Paid Target $33,000 with a Check towards the Equipment from Transaction #3.
16. Jan-27 JW Corp Wrote a Check to Skype for the Full Amount Due on account for the Telephone Bill from #9.
17. Jan-28 JW Corp Paid $4.20 Cents per Share to the Owners of the Business with Checks.
18. Jan-29 JW-Corp paid $9,000 with a Check on the Note Payable from Transaction #2, $2,800 was for Interest Expense, and the remainder reduced the Note Payable.
19. Jan-31 JW-Corp recorded one Month of RENT Expense from the Prepaid Account.
20. Jan-31 JW-Corp recorded one Month of Depreciation Expense on The Office Equipment Using the Straight Line Depreciation Method.
21. Jan-31 The JW Corp recorded one Month of Depreciation Expense on the Office Building using the Straight Line Depreciation Method.

Jan-31 the JW-Corp Recorded the Income Tax Payable for the Month, which is 40% of Net Income

Answer 1

Here is the Multi steps income statements and Owners' Equity Statements.

The Followings information are for the calcualtion purpose: