Question

Expands on: E1-9 LO: 5
Seattle Service had the following financial information at the end of 2017.
	1/1/2017	2017	12/31/17
Accounts Payable    $15,000	15000
Accounts Receivable		$1,000	20,000
Advertising Expense
Cash			11,000
Owner's Capital	$21,000		?
Owner's Drawings		9,000
Equipment			33,000
Notes Payable			20,000
Rent Expense		3,500
Salaries and Wages Expense		16,000
Serv;ce Revenue		40,000
Utilities Expense		2,500
Instructions:
Prepare a 2017 income statement, 2017 owner's equity statement, and a 12/31/17 balance sheet for Seattle Service.

Answer 1

Income Statement
Service Revenue	40,000
Less: Expenses
Rent Expense	3,500
Salaries and Wages	16,000
Utilities	2,500
Net Income	18,000.00
Equity Statement
Opening Capital	21,000
Add:
Net Income	18,000
Less:
Drawings	9,000
Closing Capital	30,000

Balance Sheet
	$		$
Accounts Payable	15,000	Cash	11,000
Notes Payable	20,000	Accounts Receivable	20,000
		Equipment	33,000
Capital	30,000
	65,000		64,000

Dear Student, there is difference of $1,000 because that $1,000 is not correctly given by you that where it belongs, so just check the question u uploaded.

U can correct it and then i can update the answer.

If u need any help, plz feel free to reach me.