Question

* Question 2

Okabe Company ended its fiscal year on July 31, 2017. The company’s adjusted trial balance as of the end of its fiscal year is shown below. OKABE COMPANY Adjusted Trial Balance July 31, 2017 No. Account Titles Debit Credit 101 Cash $9,400 112 Accounts Receivable 8,900 157 Equipment 16,000 158 Accumulated Depreciation-Equip. $7,200 201 Accounts Payable 4,100 208 Unearned Rent Revenue 2,000 301 Owner’s Capital 45,700 306 Owner’s Drawings 15,800 400 Service Revenue 63,600 429 Rent Revenue 6,400 711 Depreciation Expense 6,900 726 Salaries and Wages Expense 56,500 732 Utilities Expense 15,500    $129,000 $129,000

Prepare an income statement for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) OKABE COMPANY Income Statement $ $ $ $

Prepare an owner’s equity statement for the year. Okabe did not make any capital investments during the year. OKABE COMPANY Owner’s Equity Statement $ : $

Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) OKABE COMPANY Balance Sheet Assets $ $ : $ Liabilities and Owner's Equity $ $ $

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Answer 1

OKABE COMPANY
Income Statement
For the year ended July 31, 2017
Revenues
Service revenue	$     63,600
Rent revenue	$        6,400
Total Revenues		$     70,000
Less: Operating expenses
Depreciation expense	$        6,900
Salaries and wages expense	$     56,500
Utilities expense	$     15,500
Total operating expense		$     78,900
Net loss		$     (8,900)

OKABE COMPANY
Owner’s Equity Statement
For the year ended July 31, 2017
Owner’s Capital - Beginning balance	$     45,700
Add: Net loss	$     (8,900)
	$     36,800
Less: Withdrawals	$   (15,800)
Owner’s Capital - Ending balance	$     21,000

OKABE COMPANY
Balance Sheet
As at July 31, 2017
Assets
Cash	$     9,400
Accounts Receivables	$     8,900
Total current assets		$   18,300
Property, Plant and Equipment
Equipment	$   16,000
Accumulated depreciation - Equipment	$   (7,200)
Total property, plant and equipment		$     8,800
Total Assets		$   27,100
Liabilities and Owners equity
Current Liabilities
Accounts payable	$     4,100
Unearned rent revenue	$     2,000
Total Current liabilities		$     6,100
Owner's equity
Owner's capital		$   21,000
Total liabilities and Owners equity		$   27,100

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