Question

On March 1, 2009, the amount of Norton Cook's capital in Cook's Catering Company was $150,000. During March, he withdrew $31,000 from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows Accounts payable Accounts receivable Cash Fees earned Insurance expense Land Miscellaneous expense Prepaid insurance Rent expense Salary expense Supplies Supplies expense Utilities expense s 10,250 45,950 19,390 60,500 1,275 85,400 1,210 3,000 9,000 20,300 900 525 2,800 Present, in good form, (a) an Income Statement for March. (b) a Statement of Owner's Equity for March and (c) a Balance Sheet as of March 31

Answer 1

Answer to Question 1:

Cook's Catering Compan Income Statement For the Month Ended March 31, 2009 Fees Earned Operating expenses Salary expense Rent expense Utilities expense Supplies expense Insurance expense Miscellaneous expense Total operating expenses Net Income 60500 20300 9000 2800 525 1275 1210 35110 25390 Cook's Catering Compan Statament of Owner's Equi For the Month Ended March 31, 2009 Norton Cook, Capital, March 1, 2009 Add: Net Income for the month Less: Withdrawals Norton Cook, Capital, March 31, 2009 150000 25390 31000 144390

Cook's Catering Compan Balance Sheet March 31, 2009 Assets Cash Accounts receivable Prepaid insurance Supplies Land Total assets 19390 45950 3000 900 85400 154640 Liabilities Accounts payable 10250 Owners Equit 144390 Norton Cook, Capital Total liabilities and owner's equity 154640

Answer to Question 2:

Assets: Accounts Receivable, Land
Liability: Accounts Payable
Owner’s Equity: Wages Expense, Capital, Withdrawals