Question

Sep.		1		Strods invested $144,000 cash along with office equipment valued at $27,800 in a new sole proprietorship named AS Consulting.
Sep.		3		The company purchased land valued at $40,000 and a building valued at $162,800. The purchase is paid with $32,800 cash and a long-term note payable for $170,000.
Sep.		5		The company purchased $4,800 of office supplies on credit.
Sep.		7		Strods invested a personal automobile in the company. The automobile has a value of $22,100 and is to be used exclusively in the business.
Sep.		9		The company purchased $10,100 of additional office equipment on credit.
Sep.		11		The company paid $2,850 cash salary to an assistant.
Sep.		13		The company provided services to a client and collected $6,700 cash.
Sep.		15		The company paid $1,400 cash for this month’s utilities.
Sep.		17		The company paid $4,800 cash to settle the account payable created on September 5.
Sep.		19		The company purchased $20,700 of new office equipment by paying $20,700 cash.
Sep.		21		The company completed $7,000 of services for a client, who must pay within 30 days.
Sep.		23		The company paid $2,850 cash salary to an assistant.
Sep.		25		The company received $5,000 cash in partial payment on the receivable created on September 21.
Sep.		27		Strods withdrew $3,200 cash from the company for personal use.

1/Prepare income statement

2/prepare statement of owner`s equity

3/Prepare balance sheet  

Answer 1

Trial Balance
For the Month Ended Sep 30
	Dr. Amt.	Cr. Amt.
Cash	87,100.00
Accounts Receivable	2,000.00
Office Supplies	4,800.00
Land	40,000.00
Building	162,800.00
Office Equipment	58,600.00
Automobile	22,100.00
Accounts Payable		10,100.00
Notes Payable - Long Term		170,000.00
Strods, Capital		193,900.00
Strods, Withdrawls	3,200.00
Service Revenue		13,700.00
Salary Expense	5,700.00
Utilities Expense	1,400.00
Total	387,700.00	387,700.00
		-
AS CONSULTING
Income Statement
For the Month Ended Sep-30
Revenue
Service Revenue		13,700.00
Expenses
Salary Expense	5,700.00
Utilities Expense	1,400.00	7,100.00
Net Income		6,600.00
There is no details given for how much office supplies is used and depreciation expense on Office Equipment, Building & Automobile.
So, no Office Supplies Expense and Depreciation Expense is charged.
AS CONSULTING
Statemeny of Owners Equity
For the Month Ended Sep-30
Beginning Balance, Sep 1		-
Net Income	6,600.00
Strods, Withdrawls	(3,200.00)
Net Increase in Owners' Equity		3,400.00
Capital Introduced during Sep		193,900.00
Ending Balance, Ssep 30		197,300.00
AS CONSULTING
Balance Sheet
Sep-30
Assets
Current Assets
Cash	87,100.00
Accounts Receivable	2,000.00
Office Supplies	4,800.00	93,900.00
Property, Plant & Equipment
Land	40,000.00
Building	162,800.00
Office Equipment	58,600.00
Automobile	22,100.00	283,500.00
Total Assets		377,400.00
Liabilities & Owners' Equity
Liabilities
Current Liabilities
Accounts Payable		10,100.00
Long Term Liabilities
Notes Payable - Long Term		170,000.00
Total Liabilities		180,100.00
Owners' Equity
Strods, Capital		197,300.00
Total Liabilities & Owners' Equity		377,400.00	-