Question

Carla Carpenter Car Wash Company had the following business transactions during October 20xx, the first month of business activity. Carla earns revenue by washing automobiles and busses. All transactions relate to the affairs of the business: a) On October 1st, Carla deposits $30,000 in a bank account in the name of Carla Carpenter Car Wash Company b) On October 3, Carla buys equipment on account for $12,000 c) On October 10th, Carla pays $130.00 for supplies. d) On October 15th, Carla determines that total revenue earned for the first two weeks of the month was $6,293.00. of this amount, the amount realized in cash is $5,375.00 and the amount of accounts receivable is $918.00 e) On October 17th, Carla pays the following expenses of the business: Utilities: $280.00, Telephone: $250.00, Rent: $1,500.00, and Advertising: $435.00 f) On October 23, Carla received $660.00 in cash from clients to whom he provided services on account (see transaction "d"). 8) On October 26th, Carla pays $360 to an assistant for salaries expense.

Answer 1

The answer is attached below. please refer

Cash Account Carla Carpenter Car Wash Company Income Statement For October 20xx 30,000 Revenue & Gains Revenue Total Revenue $ $ 46293+3070 9,363 9,363 Receipt Deposit Account Receivable 5375+2200 Cash Received On Credit realised IS Total Reeipt $ 360 37,935 130-40 $ $ Expenses & Losses Supplies Utilities Telephone Rent Advertising Salaries Total Expenses $ $ $ $ 90 280 250 1,500 435 360 2,915 Payment Equipment (Payment) Supplies Utilities Telephone Rent Advertising Salaries Total Payments 5,600 130 280 250 1,500 435 360 8,555 Net Profit / Net Income $ 6,448 Net Balance $ 29,380 1918-660+870 Assets Balance Equipment Account Receivable Cash Supplies Total Assets $ 12,000 $ 1,128 $ 29,380 $ 40 $ 42,548 Account Receivable Oct 15 Sales Oct 30 Sales Less: Half recipt for Oct 15 sa $ Total Account Receivable $ 918 870 -660 1,128 Account Payable Equipment Purchase Less: Payment Made Total Account Receivable $ $ $ 12,000 -5,600 6,400 If Carla withdraw $2,500 for personal use, it shall be treated as "drawing from Capital of Carla" which will not have effect on 'Net Income' derived. The drawing will reduce 'Carla Capital' if withdrawn