Question

Balance sheet and income statements amounts as of December 31, 2008 for Lesley’s Tutoring Service are listed below. Prepare a balance sheet and income statement in good form. Supplies $1,000 Revenues $23,000 Rent expense 12,000 Cash 15,000 Accounts payable 9,000 Drawings 1,000 Accounts receivable 3,000 Notes payable 1,000 Depreciation expense 5,000 Equipment 6,000 Supplies expense 2,000 Building 16000 Inventory 1,800 Tax payable 960 Prepaid Rent 1,500 Lesley, Capital ?

Answer 1

Income Statement
Revenue	23000
Less: Expenses
rent Expense	12000
Supplies Expense	2000
Depreciation Expenses	5000
Total Expenses	19000
Net Income	4000
Balance Sheet
	Amount	Amount
Assets
Current Assets
Cash(15000-1000-1500)	14000
Accounts receivable	3000
Supplies	1000
inventory	1800
Prepaid rent	1500
Total Current Assets		21300
Non current Assets
Buildings	16000
Equipment	6000
Less: Accumulated Depreciation	-5000
Total non current Assets		17000
Total Assets		38300
Liabilities and Shareholder's equity
liabilities
Current liabilities
Accounts payable	9000
Notes payable	1000
tax payable	960
Total liabilities		10960
Shareholder's equity
Common Stock(27340+1000-4000)	24340
less:Drawings	-1000
Add:Net income	4000
Shareholder's Equity		27340
Total liabilities and shareholder's Equity		38300