Question

Guy McKinley started the McKinley Charter Service at the beginning of August 2019. On August 31, 2019, the accounting records of the business showed the following information.

Equipment	$	22,500			Rent Expense	$	5,800
Accounts Receivable		3,500			Cash		6,900
Fees Income		32,250			Salaries Expense		11,700
Boats		107,500			Utilities Expense		2,350
Gasoline Expense		8,500			Supplies		4,500
Loans Payable		82,000			Initial Investment		55,500
Owners’ Withdrawal		3,300			Accounts Payable		6,800

Prepare an income statement and a statement of owner's equity for the month and a balance sheet as of August 31, 2019.

Answer 1

Guy Mckinley Income statement For the month ended August 31, 2019 Fees Income Less: Expenses Gasoline expense 32,250 8,500 Rent expense 5,800 Salaries expense 11,700 Utilities expense 2,350 Total expense 28,350 Net income 3,900 Guy McKinley Statement of owner's equity For the month ended August 31, 2019 Initial investment Add: Net income 55,500 3,900 59,400 Less: Owners' withdrawal -3,300 Owners' capital 56,100

Guy Mckinley Balance sheet As on August 31, 2019 Assets Current assets: Cash 6,900 3,500 Accounts receivable Supplies 4,500 Total current assets 14,900 Non-current assets: 22,500 Equipment Boats 107,500 Total non-current assets 130,000 Total assets 144,900 Liabilities and owners' equity Liabilities: Accounts payable Loans payable 6,800 82,000 Total liabilities 88,800 Owners' equity: Owners' capital 56,100 Total liabilities and owners' equity 144,900