Question

31. Prepare a Statement of Financial Position and an Income Statement for the new legal firm of Dewy, Cheatem, and Howe's first month of operation ending December 31, 2018. (35 Points) 1. 2. 3. 1 4. 5. 6. 7. 8. 9. 10. The three partners invested $30,000 cash in the business. Paid premium for two-year liability insurance policy, $1,500. Purchased office equipment with a cost of $20,000 with $5,000 down payment; the balance to be paid over three years $5,000 in computers and $15,000 in furniture. Paid the rent for the month $900. Purchased $470 of supplies for cash. Received cash for services for the month, $8,750. Billed clients $14,200 for monthly services. Paid monthly utility bill, $210. Partners withdrew $1,000 each for personal use. Received payments of $3,300 from credit clients from (7) above.

Answer 1

20 DATE PAGE NO Trail Balance int) Particulars Or Balance Cu Balance Partner 'capital 90000 Premium paid 1500 Office equipment 20000 Outstanding payment 15000 Rent 900 Purchase 470 Tucome Service 8750 Sennice income 14200 Receivalele (Received them 10200 210 Quawings 3000 Computel 5000 fresuitası 15000 'Cash . 70970 124950 127950 Tom Bill Vtility Opening Casta int 90000 - Pamiampaid 1500 - Down paymuit 5000 for office buipment - Ruit paid 900 6) Durcisse Supplies 470 (+) Service for month 8750 E ility Biu 210 E) Deauvings 3100 Lt Payment Retained 3300 E ludias funitur 200.00 I computer 10970

PAGE NO 92,950 Pay lenice 92956 Jucome Statemeut To Purchase 470 Yo Puemium 1500 income paid (14200 +8756 To Rent 900 TO Bill utility 210 70 puofit, 198TO (Distributeel among partners 22950 Assit, liability & cquity Partner capitel Office Cequipment Bisemalele (-) Deawia 3000 Computer + Profet 19870 106870 fuulutuse outstanding paymut 15000 cash 2870 90000 20000 10900 500o 15000 70970 121870