Question

I

Prepare an Income Statement, Statement of Owner’s Equity and Balance Sheet

Steve Austin’s Company Adjusted Trial Balance As at December 31, 2017
Cash	$4,000
Account Receivable	5,300
Prepaid Expenses	420
Equipment	12,400
Accumulated Depreciation		$2,200
Accounts Payable		800
Notes Payable		3,070
Steve Austin, Capital		13,000
Steve Austin, Drawing	800
Revenue		11,800
Wages Expenses	2,450
Rent Expenses	1,900
Utilities Expenses	1,475
Depreciation Expenses	1,150
Miscellaneous Expenses	975
Totals	30,870	30,870

Answer 1

Steve Austin's Company Income Statement
Revenue		$11,800
Less: Expenses:
Wages expense	$2,450
Rent expense	1,900
Utilities expense	1,475
Depreciation expense	1,150
Miscellaneous expense	975
Total expenses		7,950
Net income		$3,850

Statement of Owner's Equity
Steve Austin, Capital-beginning	$0
Add: Investments	13,000
Net income	3,850
	16,850
Less: Steve Austin, Drawings	800
Steve Austin, Capital-ending	$16,050

Steve Austin's Company Balance Sheet December 31, 2017
Assets:
Cash		$4,000
Accounts receivable		5,300
Prepaid expenses		420
Equipment	$12,400
Accumulated depreciation	-2,200	10,200
Total assets		19,920
Liabilities and owner's equity:
Accounts payable		800
Notes payable		3,070
Total liabilities		3,870
Owner's equity
Steve Austin, Capital		16,050
Total liabilities and owner's equity		19,920