Question

Harvey Specter started his own firm, Specter Co. on .July I, 2011. The list of different Account titles with respective balance  (each account has a normal balance) at September 30, 20l3 as follows                                        Specter Co. 

                                          List or Accounls

 

                                                            September 30 20 I 3

 

Account #	Account Title	Bnlance $
101	Cash	8,100
112	Accounts Receivables	10,800
126	Prepaid incsurance	8,400
130	Building	50,000
149	Equipment	24,000
201	Accounts Payable	20,000
209	Unearned Service Revenue	6,000
254	Capital	22,900
330	Drawings	10,000
354	Sales Revenue	60,000
333	Salaries Expense	7,000
440	Rent Expense	30,000
470	advetising Expense	3,500
380	Inventories	1,500
480	Trade mark	21,000
420	Mortgage payable	48,000
355	Dividend Revenue	19000
	Accumulated Depreciation -Building	4,000
205	supplies	5,600

Prepare asinglestep income statement  and Owners equity statement for the quaner ending September 30 and  a classified balance sheet as of Sep1ember 30.2013.

 

 

Answer 1

 

Income Statement
Sales Revenue	$60,000
Dividend Revenue	$19,000
Total Revenue		$79,000
Less:Expenses
Salaries Expesne	$7,000
Rent Expense	$30,000
Advertising Expense	$3,500
Total Expenses		$40,500
Net Income		$38,500

 

 

 

Balance sheet as on 30 sep 2013
Assets
Current Assets
Cash	8,100
Trade Receivables	10,800
Inventories	1,500
Supplies	5,600
Prepaid insurance	8,400
Total Current assets		34,400
Non current assets
Building	50,000
Less:accumulated Depreciation	4,000	46,000
Equipment		24,000
Trade mark		21,000
Total Assets		125,400
Equity and Liabilities
Current Liabilities
Trade Payable		20,000
Unearned Service Revenue		6,000
Non current Liabilities
Mortgage Payable		48,000
Equity
Ownwers Equity		$51,400
Total Laiblities and Equity		125,400

Owners Equity Statement
Capital	$22,900
Less:Draiwngs	$10,000
Add:Net Income	$38,500
Owners Equity		$51,400

Net Income $ 38,500, Balance sheet Total $ 125,400