Question

1. Below is the year-end adjusted trial balance for Lucie Accounting. (10 marks

3. Below is the year-end adjusted trial balance for Lucie Accounting. (10 marks Lucie Accounting Trial Balance December 31, 2015 Account Dr. 13,000 Cr. Cash Accounts receivable Office supplies Prepaid insurance Long term note receivable Land Equipment Accumulated depreciation, Equipment Building Accumulated depreciation, Building Customer list Notes payable Unearned accounting fees Salaries payable Lucie Majeau, capital Lucie Majeau, withdrawals Accounting fees earned Depreciation expense, Building Depreciation expense, Equipment Insurance expense Rent expense Office supplies expense Repairs expense Telephone expense Totals 3,200 500 12,000 4,000 100,000 50,000 12.000 170,500 14,000 3,000 12.000 5.000 8,000 100,000 5,000 240,000 6,000 4,000 900 12,000 900 5,000 1,000 391.000 391,000 $ Prepare an income statement, statement of changes in equity and a classified balance sheet. This is Lucie's first year of operations.

Answer 1

Income Statement for the year 2015
Revenue
Accounting fees Revenue	240,000
Total (A)	240,000
Expenses
Office Supplies Expenses	900
Depreciation Expenses	10,000
Insurance Expenses	900
Rent Expenses	12,000
Repair Expenses	5,000
Telephone Expenses	1,000
Total (B)	29,800
Net Income	210,200

Statement of owners equity
Particulars	Amount
Lucie Capital- Opening	100,000
(+) Net income for the year	210,200
(-) Withdrawals	(5,000)
Lucie Capital- Closing	305,200

Balance Sheet as on 2015
Liabilities	Amount	Assets	Amount
Lucie Capital	305,200	Non Current Asset
		Land	100,000
		Equipment(net)	38,000
		Building(net)	156,500
		Long term note receivable	4,000
Non Current Liabilities	-	Customer list	3,000
		Current Asset
Current liabilities		Accounts Receivable	3,200
Notes Payable	12,000	Office Supplies	500
Unearned Accounting Fees	5,000	Prepaid insurance	12,000
Salaries payable	8,000	Cash	13,000
Total	330,200	Total	330,200