Question

These financial statement items are for Rugen Company at year-end, July 31, 2020.
Prepare a owner’s equity statement for the year.

Prepare a classified balance sheet at July 31.

Salaries and wages payable		$2,980		Notes payable (long-term)		$3,000
Salaries and wages expense		45,700		Cash		5,200
Utilities expense		21,100		Accounts receivable		9,780
Equipment		38,000		Accumulated depreciation		6,000
Accounts payable		4,100		Owner’s Drawings		4,000
Service revenue		57,200		Depreciation expense		4,000
Rent revenue		6,500		Owner’s capital (beginning of the year)		48,000

Answer 1

Balance Sheet:
Assets
Current assets
Cash			5200
Accounts receivable		9780
Total current assets			14980
Equipment		38000
Less: Accumulated dep	6000	32000
Total assets			46980
Liabilities and Equity:
Liabilities:
Salaries and wages payable	2980
Accounts payable		4100
Current liabilities			7080
Notes pyable-Long term		3000
Total Liabilities			10080
Owner's capital			36900
Total liabilities and equity		46980
Note:
Net Income:
Revenues:
Service revenue		57200
Rent revenue		6500
Total revenue			63700
Expense:
Slaries and wages expense	45700
Utilities expense		21100
Depreciation expense	4000
Total expenses			70800
Net Loss				-7100
Capital balance:
Beginning balance of capital		48000
Less: Net Loss			-7100
Less: Withdrawals			-4000
Ending balance of capital		36900