Question

Following are the financial statement data for Jones Temporary Services at December 31, 2018.

Prepare Degen’s income statement, statement of owner’s equity and balance sheet.

Accounts Payable                               10,000

Accounts Receivable                         36,000

Cash                                                   65,000

Repairs Expense                                 1,250

Prepaid Insurance                                3,000

Jones, Capital, 1/1/18                         53,000

Contributions by Jones                        5,000

Rent Expense                                    24,000

Utilities Expense                                   1,000

Fees Earned                                       63,000

Telephone Expense                                750

Answer 1

	Jones Temporary Services income statement
	For the year ended 31 st Decemeber 2018
	Net income =(Revenue+ Gain)- ( Expenses + Losses)
( A ) Revenue & Gains
	Fees Earned		63,000.00
		Total Revenue & Gains		63,000.00
( B ) Expenses & Loses
	Repairs Expense		1,250.00
	Rent expense		24,000.00
	Utilities expense		1,000.00
	Telephone Expense		750.00
		Total Expenses & Losses		27,000.00
		Net Income (A) - (B)		36,000.00

Jones Temporary Services
State of Changes in Owner's Equity
For the Year Ended December 31 , 2018
Owner's equity at Jan 01 ,2018			53,000.00
Add:- Owner's Investment			5,000.00
Add: Net Income			36,000.00
Owner's equity at December 31,2018			94,000.00

Jones Temporary Services
BALANCE SHEET
As at December 31 , 2018
Assets	Amount ($)	Liabilities & Stock holder's equity	Amount ($)
Current assets:		Current liabilities:
Cash	65,000.00	Accounts Payable	10,000.00
Accounts Receivable	36,000.00
Prepaid Insurance	3,000.00	Stock holder's equity:-
		Capital stock	94,000.00
	1,04,000.00		1,04,000.00