Question

Betty Smith is the owner of the Accurate Tax Service. For the year ended 12/31/17 the following information is available for this service business: Cash, $62,500; Accounts receivable, $3,700; Office Furniture & Fixtures, $11,300; Office Machines & Computers, $15,000; Automobile, $9,500; Accounts Payable, $1,700; Betty Smith Capital, $32,000; Owner draw,$18,600; Revenue from tax preparation, $71,300; Revenue from monthly clients, $43,800; Salaries expense, $12,500; Advertising expense, $900; Rent expense, $6,000; Automobile expense, $1,300; General office expenses, $7,500. Prepare an income statement and balance sheet for the year ended 12/31/17.

Answer 1

Betty Smith
Income statement
for the period ended Dec 31, 2017	amount ($)
revenue:
tax preparation	71300
monthly clients	43800
total revenue		115100
less:operating expenses
salaries expense	12500
advertising expense	900
rent expense	6000
automobile expense	1300
general office expense	7500
total operating expenses		28200
net income		86900

Betty Smith
Balance Sheet
as of year ended Dec 31, 2017
liabilities		amount ($)	assets		amount ($)
current liabilities			current assets
accounts payable		1700	cash	62500
stockholers equity			accounts receivable	3700
capital	32000		total current assets		66200
less:drawings	-18600		fixed asset:
add:crrent net income	86900		office furniture & fixtures		11300
total stockholders equity		100300	office machines & computers		15000
			automobile		9500
total liabilities and stockholders equity		102000	total assets		102000