Question

The partial worksheet for laredo as follows Income statemetn Balance sheet

DR CR DR CR

Cash 9000

accounts recevi 11000

supplies 5500

equipments 30000

acum dept 8000

account payable 9000

capital 32000

drawing 2000

fees income 23300

salaries expense 12200

rent expense 1000

supplies exp 600

dep exp 1000

total  

net income 23300 23300 57500 57500

prepare income statment, owners equity and balance sheet

Answer 1

1) Income Statement for Laredo is prepared as follows:- (Amount in $)

Fees Income (A)		23,300
Expenses:
Salaries Expense	12,200
Rent Expense	1,000
Supplies Expense	600
Depreciation Expense	1,000
Total Expenses (B)		14,800
Net Income to be credited to Owner's Equity (A-B)		8,500

2) Owner's Equity for Laredo is shown as follows:- (Amount in $)

Opening Capital balance (from trial balance)	32,000
Add: Net income	8,500
Less: Drawings made during the year	(2,000)
Closing Capital Balance	38,500

3) Balance sheet for Laredo is shown as follows:- (Amount in $)

Assets		Amount
Current Assets
Cash		9,000
Accounts Receivable		11,000
Supplies		5,500
Fixed Assets
Equipment, Gross	30,000
Less: Accumulated Depreciation	(8,000)
Equipment, Net of depreciation		22,000
Total Assets		47,500
Liabilities and Stockholder's Equity		Amount
Current Liabilities
Accounts Payable		9,000
Stockholder's Equity
Owner's Equity		38,500
Total Liabilities and Stockholder's Equity		47,500