Question

JenCo showed the following trial balance information (in alphabetical order) for its first month just ended March 31, 2017:

Account		Debit			Credit
Accounts payable				$	500
Accounts receivable	$	1,950
Cash		500
Equipment		700
Interest expense		10
Marie Jensen, capital					2,050
Marie Jensen, withdrawals		1,500
Notes payable					1,100
Prepaid insurance		300
Salaries expense		800
Service revenue					1,650
Unearned service revenue					460
Totals	$	5,760		$	5,760

Use the information provided to complete an income statement, statement of changes in equity, and balance sheet.

Answer 1

JenCo
Income Statement
for the year ended March 31,2017
Service revenue	1650
Less: Operating Expenses
Salaries Expense	800
Interest Expense	10
Operating Income	840
Statement of changes in equity
Marie Jensen , Equity at Beginning	2050
Add: Operating Income	840
Less: Marie Jensen withdrawals	1500
Marie Jensen , Equity at End	1390

Balance Sheet
For the year ended March 31, 2017
Assets	Amount	Liabilities and Owner's Equity	Amount
Current Assets		Current Liabilities
Cash	500	Accounts Payable	500
Accounts Receivable	1950	Notes Payable	1100
Prepaid Insurance	300	Unearned Revenue	460
Total Current Assets	2750	Total Current Liabilities	2060
Non Current Assets		Shareholder's Equity
Equipment	700	Marie Jensen , Equity at End	1390
Total non current assets	700
Total Assets	3450	Total Liabilities and Owner's Equity	3450