Question

create income statement, balance sheet, and statement of changes in equity

Accounts receivable A Accounts payable L Cash A Common stock # $ Equipment A $ Insurance expense Expense $ Miscellaneous expense Expense $ Office supplies expense Exceng $ Service revenue Rev $ Wages expense Expense $ Dividends 6 $ 3,000 4,000 2,000 6,000 10,000 1,500 2,500 500 25,000 10,000 300

Answer 1

Solution:

Income statement
Particulars	Amount
Service revenue	$25,000.00
Expenses:
Insurance expense	$1,500.00
Miscellaneous expense	$2,500.00
Office supplies expense	$500.00
Wages expense	$10,000.00
Net income	$10,500.00

Statement of changes in equity
Particulars	Common stock	Retained earnings
Beginning balance	$6,000.00	$0.00
Add: net income	$0.00	$10,500.00
Less: Dividends	$0.00	$300.00
Ending balance	$6,000.00	$10,200.00

Balance Sheet
Assets	Amount	Liabilities and Equity	Amount
Cash	$2,000.00	Liabilities:
Accounts receivables	$3,000.00	Accounts payable	$4,000.00
Equipment	$10,000.00	Equity:
Other assets (Bal fig)	$5,200.00	Common stock	$6,000.00
		Retained earnings	$10,200.00
Total Assets	$20,200.00	Total Liabilities and equity	$20,200.00