Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1

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Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1

Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1. On March 31, the company's records show the following accounts and amounts for the month of March.

Equipment	$9,000	Office supplies	$2,500
Salaries expense	4,000	Rental revenue	1,500
Consulting revenue	17,000	Advertising expense	600
Cash	10,000	Prepaid insurance	2,000
Utilities expense	400	Accounts payable	4,500
Note payable	3,400	Note receivable	3,500
Accounts receivable	4,500	Rent expense	3,000
A. Lopez, Withdrawals	3,000	Unearned revenue	500

Required:

1. Prepare a March income statement for the business.

2. Prepare a March statement of owner's equity. The owner's capital account balance at February 28 was $0, and the owner invested $15,600 cash in the company on March 1.

3. Prepare a March 31 balance sheet. Hint: Use the owner's capital account balance calculated in part 2.

business accounting

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Answer 1

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1) Income Statement
METRIX
Income Statement
At the end of March 31
Consulting revenue	$ 17,000
Rental revenue	$ 1,500
Less: Expenses:
Salaries expense	-$ 4,000
Utilities expense	-$ 400
Advertising expense	-$ 600
Rent expense	-$ 3,000
Net Income	$ 10,500

2) Statement of Owners' Equity
METRIX
Statement of Owner's Equity
At the end of March 31
A. Lopez, Capital	$ -
Add: New Capital Issued	$ 15,600
Add: Net Income	$ 10,500
Less: A. Lopez, Withdrawals	-$ 3,000
Total Owner's Equity	$ 23,100

3) Balance Sheet
METRIX
Balance Sheet
At the end of March 31
Assets		Liabilities
Cash	$ 10,000	Accounts Payable	$ 4,500
Accounts Receivable	$ 4,500	Unearned Revenue	$ 500
Office supplies	$ 2,500	Total Current Liabilities	$ 5,000
Prepaid Insurance	$ 2,000	Notes Payable	$ 3,400
Notes Receivable	$ 3,500	Total Liabilities	$ 3,400
Total Current Assets	$ 22,500
Equipment	$ 9,000	Total Owners' Equity	$ 23,100
Total Assets	$ 31,500	Total Liabilities and Owners' Equity	$ 31,500

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Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1

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