Question

Required information [The following information applies to the questions displayed below.]

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below. Cash 19,400 Fees Income -0- Accounts Receivable 800 Rent Expense -0- Office Equipment 2,000 Utilities Expense -0- Supplies 200 Salaries Expense -0- Accounts Payable 1,000 Kelly Connor, Capital 21,400 Kelly Connor, Drawing -0- The following transactions occurred during the month of November. Collected $300 from credit customers. Issued a check for $710 for November's rent. Paid $1,700 for salaries. The owner withdrew $510 in cash for personal expenses. Issued a check for $210 to pay the monthly utility bill. Received $2,700 in cash for services performed. Purchased office equipment for $1,300 on credit.

1. Prepare an income statement for Paw Prints Pet Sitters for month ended November 30, 2019.

2. Prepare a statement of owner’s equity for Paw Prints Pet Sitters for the month end November 30, 2019.

3. Prepare a balance sheet for Paw Prints Pet Sitters as of November 30, 2019.

Answer 1

Income Statement
Particulars	Amount
Revenue	2,700
Total Revenue		2,700
Rent expense	(710)
Salary expenses	(1,700)
Utility expenses	(210)
Total Expenses		(2,620)
Net Profit		80

Balance Sheet
Assets		Amount
Cash	19,400
Amount Collected	300
rent paid	(710)
Salaries	(1,700)
Withdrawn Cash	(510)
Revenue	2,700
		19,480
Account receivables	800
Amount Collected	(300)
		500
Office equipment	2,000
Purchase	1,300
		3,300
Supplies		200
Total Assets		23,480
Liabilities
Accounts payable	1,000
Utility bills	210
Purchase of equipment	1,300
		2,510
Owners Equity		20,970
Total Liabilities and Owners equity		23,480

Statement of changes in equity
Particulars	Amount
Opening balance as at Nov 1	21,400
Drawings	(510)
Net profit for the Month	80
Closing Balance as of 30 Nov	20,970

Note

In Balance sheet and income statement 2 Columns are prepared. Inner column shows all the transactions which are given as a working note and outer is final answer.