Question

NTS) On January 1, 2018, Donna Cochran invested $20,000 in Donna's Antiques. During 2018, Donna withdrew $11,000 for personal use. Donna's Antiques reports the tollowing balances on December 31, 2018 Accounts receivable 2 Accounts payable Depreciation expense Service revenue Land Travel expense Building Note payable i Supplies Donna Cochran, Capital Jan 1, 2018 Salary expense Cash L Supplies expense Postage expense xUnearned Service Revenue $14,000 4200 2.200 27,750 20,000 2.900 85,000 12,800 900 90,000 6,650 10,500 3,000 1,600 3,000 99 Donna's Antiques Prepare an income statement for the year ended December 31, 2018- 150 IACOME Statement year ended December 31,2018 Revenue 2ר,רO Service Revenue tanearnal Serpvie bevinur 3 Expense Depreciation Expense 2,200 Travel exDense 2,900 Salary expense supplies expense postage expense 3,0 00 I,G00 Net totot 2A66

Answer 1

DONNAs Antiques income statement for the period ended dec 31 2018 27750 2200 2900 service revenue expenses depreciation exp travelling exp salaries expense postage supplies exp total expenses net income 6650 1600 3000 16350 11400 retained earnings statement retained earnings opening jan 1 2018 add net income sub total less withdrawls retain earnings ending dec 31 2018 90000 11400 101400 11000 90400

balance sheet as on dec 31 2018 assets cash 10500 14000 900 20000 85000 130400 accounts receivable office supplies land building total assets total liabilities and shareholders equity accounts payable unearned service revenue notes payable retained earnings ending capital total liabilities and shareholders equity 4200 3000 12800 90400 20000 130400