Question

Problem 7 – (worth 10 Points) 7.) The following work sheet is for Tuttle Photography, a proprietorship. Tuttle Photography Work Sheet For the Year Ended December 31, 2011 Accounts Debit Credit Cash 15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation 12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 12,000 Unearned service revenue 25,000 Mortgage payable 100,000 Capital 11,290 Withdrawals 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20.900 469,790 469.790 Using the information from the worksheet above, prepare a) an Income Statement b) a Statement of Owner's Equity c) a Balance Sheet Note: Prepare all three (3) statements in good form.

Answer 1

a.

Tuttle Photography
Income Statement
For the year ended December 31,2011
Revenues
Service Revenue		289000
Expenses
Salaries expense	61000
Depreciation expense	6150
Supplies expense	14040
Insurance expense	14000
Utilities expense	20900
		116090
Net Income		172910

b.

Tuttle Photography
Statement of Owners Equity
For the year ended December 31,2011
Capital , 01/01/2011		11290
Net Income		172910
Withdrawals		23000
Capital , 12/31/2011		161200

c.

Tuttle Photography
Balance Sheet
As at December 31,2011
Assets
Cash		15000
Accounts Receivable		30000
Prepaid Insurance		7500
Office Supplies		3200
Land		40000
Building	160000
Less: Accumulated depreciation- building	12000	148000
Equipment	75000
Less: Accumulated depreciation- equipment	8500	66500
Total Assets		310200
Liabilities
Accounts Payable	12000
Salaries payable	12000
Unearned Service Revenue	25000
Mortgage payable	100000
Total liabilities		149000
Owners Equity
Capital		161200
Total liabilties and Owners Equity		310200