Question

Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $31,200. Following is a summary of activities during this accounting period:

Betty Smith, capital withdrawn: $19,000
Revenue from income tax preparation: $69,900
Revenue from monthly clients: $45,800
Salaries expense: $12,800
Advertising expense: $800
Rent expense: $6,000
Automobile expense: $1,200
Office supplies expense: $7,600.

Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital account at the end of the period.

Following are the account balances at the end of this accounting period (except Betty Smith, Capital):

Cash: $63,200
Accounts receivable: $4,300
Office furniture and fixtures: $10,400
Office machines and computers: $14,000
Automobile: $9,600
Accounts payable: $1,400

part a is done

part b)

Prepare a balance sheet as of April 30, 2019.

ACCURATE	TAX SERVICE
BALANCE	SHEET
As of April	30, 2019
ASSETS
Cash	$enter a dollar amount
Accounts receivable	$enter a dollar amount
Office Furniture and Fixtures	$enter a dollar amount
Office Machines and Equipment	$enter a dollar amount
Automobile	$enter a dollar amount
TOTAL ASSETS	$enter a total amount for this part of the balance sheet
LIABILITIES
Accounts payable	$enter a dollar amount
NET WORTH
Betty Smith, Capital	$enter a dollar amount
TOTAL LIABILITIES & NET WORTH	$enter a total amount for this part of the balance sheet

Answer 1

Accurate Tax Services
Income Statement
Year Ended April 30, 2019
Revenue	115,700
Expenses
Salaries Expense	12,800
Advertising Expense	800
Rent Expense	6,000
Automobile Expense	1,200
Office Supplies Expense	7,600
Total Expense	28,400
Net Income	87,300

Revenue Section include both revenue

Net Income = Revenue - Expense

Accurate Tax Services
Capital Account
Year Ended April 30, 2019
Opening Balance	31,200
Add : Net Income	87,300
Less : Withdrawals	(19,000)
Closing Balance	99,500

Accurate Tax Services
Balance Sheet
Year Ended April 30, 2019
Assets
Current Assets
Cash Account	63,200
Accounts Receivable	4,300
Total Current Assets	67,500
Fixed Assets
Office Furniture and Equipment	10,400
Office Machines and Computers	14,000
Automobiles	9,600
Total Fixed Assets	34,000
Total Assets	101,500
Liabilities and Equity
Accounts Payable	1,400
Total Liability	1,400
Capital	99,500
Total Liability and Equity	100,900

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