Question

15. The account balances of Carl Services at January 31, 2010 are listed below:

Accounts Payable	P12,000	Carl, Capital	P10,000
Accounts Receivable	6,000	Supplies	2,000
Cash	16,000	Taxes Expense	300
Computer Equip	13,000	Utilities Expense	4,000
Fees Earned	47,000	Wages Expense	21,000
Rent Expense	6,000	Supplies Expense	700

Prepare and income statement, statement of owner’s equity, and a balance sheet as of January 31, 2010.

Answer 1

1. INCOME STATEMENT
	CAR SERVICES
	INCOME STATEMENT
	For the year ended 31st January 2010
	Particulars	Amount ($)	Amount ($)
	(A)REVENUES
	Fee Earned		47,000
	(B)EXPENSES
	Supplies	2,000
	Rent Expense	6,000
	Tax Expense	300
	Utilities Expense	4,000
	Wage Expense	21,000
	Supplies Expense	700
	Total Expense		34,000
	Net Income (A)-(B)		13,000
2. STATEMENT OF OWNERS EQUITY
	CAR SERVICES
	STATEMENT OF OWNERS EQUITY
	For the year ended 31st January 2010
	Particulars	Amount ($)	Amount ($)
	Owner's Equity - Opening	10,000
	ADD :
	Net Income (Ref 1)	13,000
	SUB TOTAL		23,000
	DEDUCT :
	Owners Drawings		Nil
	Owner's Equity - 31st Jan 2010		23,000
3. Balance Sheet
	CAR SERVICES
	BALANCE SHEET
	As on 31st january 2010
	LIABILITIES	AMOUNT	ASSETS	AMOUNT
	Owners Equity (Ref 2)	23,000	Fixed Assets
			Computer Equipment	13,000
	Current Liabilities
	Accounts Payable	12,000	Current Assets
			Accounts Receivable	6,000
			Cash and Cash Equivalents
			Cash	16,000
		35,000		35,000