Question

Selected accounts of Olsevik Janitorial; Supplies, at July 31, 2017, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and General Expenses account. Olsevik Janitorial Supplies used to periodic inventory system.

AP - 102,000
AR - 117,000
Accumulated Amortization Equipment - 61,500
B. Olsevik, capital - 863,400
B. Olsevik, withdrawals - 42,300
Cash - 46,200
Equipment - 484,000
General Expenses - 284,250
Interest Expense - 10,200
Interest Payable - 8,800
Interest Revenue - 1,500
Inventory (July 31/16) - 730,000
Inventory (July 31/17) - 525,000
Notes payable, long term - 500,000
Purchases - 1,361,000
Salaries Payable - 23,000
Salaries Discounts - 25,000
Sales Returns & Allowances - 52,800
Sales Revenue - 1,891,200
Selling Expenses - 317,250
Supplies - 16,200
Unearned SR - 34,800

1. Prepare the business's single step income statement for the year ended July 31, 2017.
2. Prepare the statement of owner's equity at July 31, 2017
3. Prepare classified balance sheet in report format at July 31, 2017

Answer 1

STATEMENT OF INCOME
							Amount $
Sales						1891200
Less: sales return and allownce						-52800
Net sales revenue							1,838,400
Interest Revenue							1,500
Gross revenue							1,839,900
Less: Operating expense
	COGS (730000+1361000-525000)			1,566,000
	General expense			284,250
	Selling expense			317,250
	Interest expense			10,200
	Salaries			25,000			2202700
Net Income Earned							-362,800
STATEMENT OF OWNER'S EQUITY
							Amount $
Beginning Capital							863,400
Less: Drawings							42,300
Add: Net income earned							-362,800
Ending Capital							458,300
BALANCE SHEET
							Amount $
ASSETS:
Current Assets:
	Cash					46,200
	Accounts Receivable					117000
	Supplies					16200
	Merchandise Inventory					525,000	704400
Fixed Assets:
	Equipment					484,000
	Less: Accumulated Dep					61,500	422,500
				TOTAL ASSETS			1,126,900
LIABILITIES:
Current Liabilities:
	Accounst Payable					102,000
	Unearned revenue					34,800
	Interest payaable					8,800
	Salaries payable					23,000	168,600
Long term notes payable							500,000
Total Liabilities:
Owner's equity							458,300
				TOTAL LIABILITIES & EQUITY			1,126,900