Question

E1-32

Learning Objective 5 E1-32 Preparing the statement of owner's equity Requirements 1. Prepare the statement of owner's equity for Wilson Towing Service for the month Ending Capital $22,450 ending June 30, 2018. Assume Wilson contributed $11,000 during June. 2. What does the statement of owner's equity report? E1-33 Preparing the balance sheet Learning Objective5 Requirements 1. Prepare the balance sheet for Wilson Towing Service as of June 30, 2018. 2. What does the balance sheet report? Total Assets $37,250 Use the following information to answer Exercises El-34 through EI-36. The assets, liabilities, and equities of Damon Design Studio have the following bal- ances at December 31,2018. The owner, Eric Damon, began the year with a $39,000 capital balance, contributed $13,000, and withdrew $57,000 during the year. Notes Payable Rent Expense Cash Office Supplies Salaries Expense Property Tax Expense 14,000 Office Furniture 23,000 Utilities Expense 3,200 Accounts Payable 5,100 Service Revenue 65,000 Accounts Receivable 2,200 Miscellaneous Expense $ 48,400 7,200 3,600 154,600 9,300 3,800 E1-34 Preparing the income statement Learning Objective 5 Prepare the income statement for Damon Design Studio for the year ending December 31, 2018. Net Income $53,400

Answer 1

Ans-E1-34 DAMON DESIGN STUDIO

Income Statement

For the Year Ended December 31, 2018

Revenue:
Service Revenue		$154,600
Expenses:
Salaries Expenses	$65,000
Rent Expenses	$23,000
Utilities Expenses	$7,200
Miscellaneous Expenses	$3,800
Property Tax Expenses	$2,200
Total Expenses		$101,200
Net Income		$53,400

DAMON DESIGN STUDIO

Statement of Retained Earnings

For the Year Ended December 31,2018

Retained Earnings, January 1, 2018	$39,000
Add:Net Income of the year	$53,400
	$92,400
Less:Drawings	($57,000)
Retained Earnings, December 31, 2018	$35,400

  

DAMON DESIGN STUDIO

Balance Sheet

December 31, 2018

Assets		Liabilities
Cash	$3,200	Accounts Payable	$3,600
Accounts Receivable	9,300	Notes Payable	14,000
Office Supplies	5,100	Total Liabilities	17,600
Office Furniture	48,400	Stockholders' Equity
		Common Stock	13,000
		Retained Earnings	35,400
		Total Stockholders' Equity	48,400
Total Assets	$66,000	Total Liabilities and Stockholders' Equity	$66,000

Note- No information is given about E-32 and E-33, so i have compeleted only E-34 to E-36.

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