Question

Various transactions of Singh Services Inc. occurred during August 2019, its first month of operations. Click on "Transactions" tab at bottom of this page to view these. Required: 1 On the printed "Worksheet" page, record the information from the "Transactions" page and total of each column at the end of August. 2 On the second part of the "Worksheet" page, prepare an income statement .and statement of changes in equity for the month ended August 31, 2019, and a balance sheet at August 31, 2019. Identify the revenue earned as Fees. Record the expenses in alphabetical order.

Answer 1

Requirement 1 Date Assets Singh Services Inc. Transactions Worksheet Liabilities Bank Acct. Unear. Truck = Loan + Pay. + Rev. + Unused Supp. August + Acct.Rec. + Ppd. Exp. + + 7000 Cash 5000 7000 -6000 -600 5000 6000 600 5000 1000 -200 100 100 S/H Equity Descriptions Comm. Stock + Ret. Earn. 5000 Issued common shares for cash Borrowed cash from bank Paid cash for purchasing truck Prepaid insurance Collected fees in advance 1000 Billed a client for services -200 Paid cash for supplies and used Purchased supplies on credit and unused Part of Account receivable collected -200 Paid cash for advertising expenses Paid part of account payables -700 Paid Rent -2000 Paid Salaries -200 Paid telephone -500 Paid Truck Operating Called clients. No entry 5000 Billed a client for services -60 Transferred prepaid insurance to expense 400 -400 -80 -200 -80 -700 -2000 -200 -500 3500 -1500 -60 31 -20 -20 Supplies used Totals 6920 ASSETS = 17640 LIAB. + S/H EQUITY = 17640

Requirement 2 Singh Services Inc. Income Statement Singh Services Inc. Balance Sheet For the Month ended August 31, 2019 At August 31, 2019 Revenue Fees (1000+5000) 6000 Assets Cash Accounts Receivable Prepaid expenses Unused Supplies Truck Total Assets 6920 4100 540 200 80 6000 17640 Expenses Advertising Insurance Rent Salaries Supplies Telephone Truck Operating Total Expenses Net Income (Loss) 60 700 2000 220 200 500 Liabilities Bank Loan 7000 Accounts Payable 20 Unearned Revenue 3500 Total Liabilities 3880 2120 10520 Stockholder's Equity Common Stock 5000 Retained Earnings 2120 Singh Services Inc. Statement of Changes in Equity For the Month Ended August 31, 2019 Common Retained Total Stock Earnings Equity Opening Balance 0 0 Stock Issued 50000 5000 Net Income (Loss) 0 2120 2120 Ending Balance 5000 2120 7120 Total S/H equity Total Liab. And equity 7120 17640