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

 

An income statement is a financial statement that shows you the company's income and expenditures. It also shows whether a company is making profit or loss for a given period. The income statement, along with balance sheet and cash flow statement, helps you understand the financial health of your business

The statement of owner's equity shows how the net worth/value (or equity) of business changed for the period of time. This statement includes Net Income (or Net Loss), which was brought forward from the income statement. The ending balance is carried forward to the balance sheet.

Balance Sheet is the financial statement of a company which includes assets, liabilities, equity capital, total debt, etc. at a point in time. Balance sheet includes assets on one side, and liabilities on the other. Liabilities on are debts or obligations of a company

the calculations are shown below