Question

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Liu Zhang operates Lawson Consulting, which began operations on June 1. On June 30, the company's records show the following accounts and amounts for the month of June. 

Cash	$5,000	Service revenue	$12,000
Accounts receivable	4,500	Equipment	6,500
Accounts payable	3,500	Rent expense	2,000
L. Zhang, Withdrawals	1,500	Wages expense	6,000

Use the above information to prepare a June statement of owner's equity for Lawson Consulting. The owner's capital account balance at May 31 was $0, and the owner invested $10,000 cash in the company on June 1. 

Answer 1

Answer:

$3,500 LAWSON CONSULTING Balance Sheet June 30 Liabilities $5,000 Accounts Payable $4,500 Leave this row blank $6,500 Owner's Equity $0 L.Zhang, Capital $0 $16,000 Total Liabilities & Owner's Equity Assets Cash Accounts Receivable Equipment Leave this row blank Leave this row blank Total Assets SO $12,500 (Ref: Statement of Owner's Equity] $16,000 Workings: LAWSON CONSULTING Income Statement For the Month Ended June 30 Revenues: Service Revenue Expenses: Rent Expense $2,000 Wages Expense $6,000 Total Expenses Net Income $10,000 (Ref: Calculation below] [Ref: Income Statement] LAWSON CONSULTING Statement of Owners' Equity For the Month Ended June 30 L.Zhang, Capital - Beginning Balance $12,000 Add: Net Income $4,000 Less: L.Zhang, Withdrawals $1,500 Net increase in owner's capital L.Zhang, Capital - Ending Balance $8,000 $4,000 ($12000 - $8000] $2,500 $12,500

Lawson Consulting Income Statement For the month ended June 30 Revenue Service revenue earned $ 12,000 Total revenue $ 12,000 Expenses: Rent expense wages expense $ 2,000 6,000 Total expense Net Income $ $ 8,000 4,000

Answer 2

$3,500 LAWSON CONSULTING Balance Sheet June 30 Liabilities $5,000 Accounts Payable $4,500 Leave this row blank $6,500 Owner's Equity $0 L.Zhang, Capital $0 $16,000 Total Liabilities & Owner's Equity Assets Cash Accounts Receivable Equipment Leave this row blank Leave this row blank Total Assets SO $12,500 (Ref: Statement of Owner's Equity] $16,000 Workings: LAWSON CONSULTING Income Statement For the Month Ended June 30 Revenues: Service Revenue Expenses: Rent Expense $2,000 Wages Expense $6,000 Total Expenses Net Income $10,000 (Ref: Calculation below] [Ref: Income Statement] LAWSON CONSULTING Statement of Owners' Equity For the Month Ended June 30 L.Zhang, Capital - Beginning Balance $12,000 Add: Net Income $4,000 Less: L.Zhang, Withdrawals $1,500 Net increase in owner's capital L.Zhang, Capital - Ending Balance $8,000 $4,000 ($12000 - $8000] $2,500 $12,500

Answer 3

$3,500 LAWSON CONSULTING Balance Sheet June 30 Liabilities $5,000 Accounts Payable $4,500 Leave this row blank $6,500 Owner's Equity $0 L.Zhang, Capital $0 $16,000 Total Liabilities & Owner's Equity Assets Cash Accounts Receivable Equipment Leave this row blank Leave this row blank Total Assets SO $12,500 (Ref: Statement of Owner's Equity] $16,000 Workings: LAWSON CONSULTING Income Statement For the Month Ended June 30 Revenues: Service Revenue Expenses: Rent Expense $2,000 Wages Expense $6,000 Total Expenses Net Income $10,000 (Ref: Calculation below] [Ref: Income Statement] LAWSON CONSULTING Statement of Owners' Equity For the Month Ended June 30 L.Zhang, Capital - Beginning Balance $12,000 Add: Net Income $4,000 Less: L.Zhang, Withdrawals $1,500 Net increase in owner's capital L.Zhang, Capital - Ending Balance $8,000 $4,000 ($12000 - $8000] $2,500 $12,500

Answer 4

Answer-

LAWSON COMPANY
Income Statement
For Month Ended June 30
	$	$
Revenues:
Service revenue	12,000.00
Total Revenues		12,000.00
Expenses:
Rent expense	2,000.00
Wages expense	6,000.00
Total expenses		8,000.00
Net income		4,000.00

Statement of Retained Earnings

For June 30

Particulars	Amount($)
Beginning Retained Earnings	0
Add Net Income (Earnings - Expenses)
=12,000-2,000-6,000	4,000
Less:withdrawals	1,500
Retained Earnings Ending Balance	$ 2,500

LAWSON CONSULTING

BALANCE SHEET

As at June 30

Assets		Liabilities
Current Assets		Accounts payable	$3,500
Cash	$5,000
Accounts Receivables	$4,500	Shareholders'Equity
		Common Stock	10,000
Non current Assets		Retained Earnings	2,500
Equipment	$6,500	Total Shareholders'Equity	$12,500
Total Assets	$16,000	Total Liabilities and Shareholders'Equity	$16,000