Question

Question 2 View Policies Current Attempt in Progress Ivanhoe's Home Renovations was started in 2008 by Jim Ivanhoe, Jim operates the business from an office in his home. Listed below, in alphabetical order, are the company's assets and liabilities as at December 31, 2021, and the revenues, expenses, and drawings for the year ended December 31, 2021: Accounts payable $8,301 Operating expenses $3,252 Accounts receivable 10,372 Prepaid insurance 1,572 Cash 7,550 Salaries expense 89,289 Equipment 29.518 Service revenue 154,658 Insurance expense 4,170 Supplies 521 Interest expense 1,314 Supplies expense 19,637 J. Ivanhoe, drawings 45,474 Unearned revenue 14,389 Notes payable 30,990 Vehicles 41.850 Jim's capital at the beginning of 2021 was $46,181. He made no investments during the year. ? - P

Answer 1

IVANHOE'S HOME RENOVATIONS Income Statement 154,658 19,637 185,021 Service Revenue (-) Supplies Expenses Gross Profit (-) operating Expenses Insurance Expenses Salaries Expense, operating Income (-) Interet Expense (-3252) (4,170) (89,289) 38,310 (1,314 ) Net Profit 36,996 IVANHOE'S HOME RENOVATIONS Balance Sheet Assets ($) Vehicles 41,850 Equipment 29,518 10,372 1,572 Accounts Receivable, Prepaid insurance Supplies Cash Total Assets 521 7,510 91,383 owner's Liabilities and Capital (-) Drawing (t) Net Profit Equity ($) 46181 (45,474) 36, 996 37, 703 Continued...

8301 Accounts Notes Payable Payable 30,990 Unearned revenue 14,389 Total abilities & Owner's 91,383 IVANHOE'S HOME RENOVATIONS Stalement of Equity - Owner's Equity Total Assets – Total Liabilities Owner's Total Assets = vehiclet Equipment + Accounts Receivablet Prepaid Insurance + supplies + Cash - 41850+ 29,518+ 10,372 + 1572+ 5217 7550 = $ 91383 Total Liabilities Accounts Payable + Note, Payable + unearned Revenue = 8301 + 30990 + 14389 - $ 53680 owney's Equity = $91383 - $ 53,680 = $ 37,703