Question

1. Prepare a balance sheet and income statement as a result of the following transactions:

1. Owner deposit of $2000 to open a bank account
2. Owner deposits and additional $500 in the bank account to increase his/her equity
3. Purchase a used hand truck for $600, paid immediately
4. Bought insurance for the truck. Insurance cost is $40 for the month; paid first month
5. Placed a newspaper ad for $25, paid.
6. Purchased ladders for $300, paid
7. Completed first job and was paid $2700 in cash
8. Purchased $200 in supplies, paid
1. Rented a sprayer for $40, paid
10. Received $120 for completed job
11. Received a bill of $15 for telephone, pay in 30 days
50. Bought gasoline for $30, paid cashbalance

Answer 1

* Income statement Revenue -fust Job - $2700 - $120 - Job $ 2,820 expenses ! -Insurance - News paper - Supplies - sprayer - telephone ***** - $40 - $25 - $200 - $40 $ 320 $ 2500 Net Income * Balance sheet Assels - Hand truck - Gasoline - $ 600 $ 30 - $4525 $300 - cashe Bank $50$ $5055 - laddees Liabilitiu - equity $ 2500 - inswance - $40 - Met income - $2500 - Pelephone - $15 $5055

Wolking Nolet Can Bank & Cash Accounts $ 600 Otg Job Job Deposits $2700 & 120 300 $ 2500 Puuck News paper- ladden - sprayu - gasoline - supplies - closing Bal - & 40 $30 $ 200 Art $4125 $5320 5820 Note Gasoline can be treated as an expense the Meet income wil decrease by $30 le $ 2470 Therefore Assets - $5025 liabilities - $ 5025