Question

DKAM UUR NEIGHBOR'S PAPER) - in the columns below, indicate whether each transaction caused an an increase ), or no change (NC) in assets, liabilities, and owner's equity. (20%) Transaction Liabilities ), a decrease 1. Investment by owner 2. Paid cash on account Assets Owner's Equity 3. Purchase office Supplies on Account 4. Collection of accounts receivable 5. Withdrawal of cash by owner 6. Billed customers for services performed 7. Paid rent expense 8. Paid cash on accounts payable 9. Purchased equipment; signed a note payable 10. Borrowed money from the bank 2. Use the following accounts and information to prepare, in good form, an income statement. statement of owner's equity, and balance sheet for Talbot Industries for the month ended July 31, 2017. (45%) Accounts Payable Accounts Receivable Buildings Cash Commissions Earned Andreas Talbot, Capital, July 1, 2017 $ 3,100 1,400 22,000 15,600 22,700 $ 8,000 Andreas Talbot, Withdrawals Insurance Expense Land Notes Payable Rent Expense Salaries Expense 2,200 77,900 45,000 3,300 2,400 10,000 Supplies 400

Answer 1

Answer-

Transactions	Assets	Liabilities	Owner's equity
1. Investment by owner	+	NC	+
2. Paid cash on account	-	-	NC
3.Purchase office supplies on account	-	+	NC
4.Collection of accounts receivable	+, -	NC	NC
5.Withdrawal of cash by owner	-	NC	-
6.Billed customer for services performed	+	NC	+
7.Paid rent expenses	-	-	NC
8.Paid cash on accounts payable	-	-	NC
9.Purchased equipment, signed a note payable	-	+	NC
10.Borrowed money from the bank	+	+	NC

2-Talbot Industries

Income Statement

For the month ended July 31,2017

Service Revenue:-
Commission earned		$22,700
Less: Operating Expenses
Insurance Expenses	$2,200
Rent expenses	$2,400
Salaries expenses	$10,000
Total Operating Expenses		$14,600
Net Income ($22,700-$14,600)		$8,100

Talbot Industries

Statement of Owner's Equity

For the Month Ended July 31,2017

Retained Earnings (Opening balance)	$0
Add: Net Income	$8,100
	$8,100
Less:Withdrawals	$8,000
Retained Earnings (Ending balance)	$100

Talbot Industries

Balance Sheet

As at July 31,2017

Current Liabilities:		Current Assets:
Accounts Payable	$3,100	Accounts Receivable	$1,400
		Cash	$15,600
Notes Payable	$3,300	Supplies	$400
Total Current Liabilities	$6,400	Total Current Assets	$17,400
Shareholders' Fund		Property, Plant and Equipment
Common Stock	$77,900	Building	$22,000
Retained Earnings	$100	Land	$45,000
Total Shareholders' Fund	$78,000	Total Property,Plant and Equipment	$67,000
Total Liabilities and Shareholders' Fund	$84,400	Total Assets	$84,400