Question

b ) trail balance ?
c) owners equity ?

Question 7 Sandhill's Home Renovations was started in 2008 by Jim Sandhill. Jim operates the business from an office in his home. Listed below, in alphabetical order, are the company's assets and liabilities as at December 31, 2021, and the revenues, expenses, and drawings for the year ended December 31, 2021 Accounts payable 57,925 Operating expenses $3,457 Accounts receivable 10,556 Prepaid insurance 1,364 Cash 9,246 Salaries expense 88,033 Equipment 29,037 Service revenue 157,710 Insurance expense 3,392 Supplies 774 Interest expense 1,082 Supplies expense 20,890 J. Sandhill, drawings 44,438 Unearned revenue 14,444 Notes payable 30,548 Vehicles 41,870 Jim's capital at the beginning of 2021 was $43,512. He made no investments during the year. (a1) Prepare the income statement. SANDHILL'S HOME RENOVATIONS Income Statement Revenues V si

Answer 1

(a)

SANDHILL'S HOME RENOVATIONS
Income Statement
For the Year Ended December 31, 2021
Revenues
Service revenue		157,710
Expenses:
Insurance expense	3,392
Interest expense	1,082
Operating expenses	3,457
Salaries expense	88,033
Supplies expense	20,890
Total expenses		-116,854
Net income		$40,856

(b)

SANDHILL'S HOME RENOVATIONS
POST -Closing Trial Balance
For the Year Ended December 31, 2021
Accounts Titles	Debit	Credit
Cash	9,246
Accounts receivable	10,556
Supplies	774
Prepaid insurance	1,364
Equipment	29,037
Vehicles	41,870
Accounts payable		7,925
Notes payable		30,548
Unearned revenue		14,444
J. Sandhill, Capital		39,930
Totals	$ 92,847	$ 92,847

(c)

SANDHILL'S HOME RENOVATIONS
Statement of Owners Equity
For the Year Ended December 31, 2021
J. Sandhill, Capital beginning	43,512
Add: Net income	40,856
	84,368
Less: J. Sandhill , drawings	-44,438
Retained earnings, ending	$39,930

Kindly comment if you need further assistance.

Thanks‼!