Question

One month transactions of Sam Company show the following balances. 1- Prepare Balance Sheet on February 28, 2019. 2. Prepare the Owner's Equity Statement Rental Income $35,000 Consulting Income $40,000 Accounting Income $50,000 Rent Expense $15,000 Insurance Expense $6,500 Salary Expense $4,000 Cash $52,200 Accounts receivable $35,000 Office supplies $2,400 Office equipment $5,600 Tel Expenses $1,000 Advertising Expenses $7,500 Accounts Payable $200 Capital $4,000 Withdrawal $0 Element of Competency: 1- Produce accounting reports

Answer 1

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Sam Company
Income statement
Particulars	Amount $	Amount $
Consulting Income	40,000.00
Rental Income	35,000.00
Accounting Income	50,000.00
Total Revenue		125,000.00
Less: Expense
Rent Expense	15,000.00
Insurance Expense	6,500.00
Salaries Expense	4,000.00
Tel Expense	1,000.00
Advertising expense	7,500.00
Operating Expense		34,000.00
Net Income		91,000.00
Answer 1
Statement of Owner's Equity	Amount $
Capital- Opening Balance	4,000.00
Add: Net Income	91,000.00
Less: Withdrawals	-
Capital- Closing balance	95,000.00
Answer 2
Balance Sheet	Amount $	Amount $
Assets
Current Assets
Cash	52,200.00
Accounts Receivable	35,000.00
Office Supplies	2,400.00
Total Current Assets		89,600.00
Plant Property & Equipment
Office Equipment	5,600.00
Total Plant Property & Equipment		5,600.00
Total Assets		95,200.00
Liabilities & Owner's Capital	Amount $	Amount $
Liabilities
Current Liabilities
Accounts Payable	200.00
Total Current Liabilities		200.00
Non Current Liabilities
Total Liabilities		200.00
Stockholder's Equity
Owner's Capital	95,000.00
Total Owner's Capital		95,000.00
Total Liabilities & Owner's Capital		95,200.00