Question

Click Submit to complete this assessment. Question 16 Mr. Wilson started tax services "Wilson Tax Consultants with a capital investment of $50,000 on January 1, 2019 in the city of Buffalo. He provides you with the following acco 31 December 2019: Cash $7,400 Prepaid rent $5,500 Accounts receivable 6,510 Utilities expense 2,800 3,000 Rent expense 8,000 Accounts payable Office furniture 9,250 Drawings, Wilson 2,000 Long term bank loan 83,000 General office expenses 4,900 1,250 Office supplies expense Services revenues 1,950 Salaries payable Office equipment 23,160 13,500 Building 100,000 Required: Using the above given information, prepare following financial statements for the Wilson Tax Consultants for the year ended December 31, 2019: a) Income Statement. b) Owner's Equity Statement. c) Classified Balance Sheet. You should copy (Ctrl-c) and paste (Ctrl-v) the appropriate template into the answer area and complete with the necessary information for each financial statement. a) Template for income statement MacBook Pro

Answer 1

a

Income Statement
Month Ended December 31, 2019
Revenues
Service revenue	23,160
Total revenue		23,160
Expenses:
Office supplies expense	-1,250
Rent expense	-8,000
Utilities expense	-2,800
General office, expenses	-4,900
Total expenses		-16,950
Net profit		$6,210

b.

Statement of Owners Equity
Month Ended December 31, 2019
Wilson, capital beginning		50,000
Add: Net profit	6,210
Less: Wilson, drawings	-2,000
		4,210
Wilson, capital ending		$54,210

c.

Balance Sheet
Month Ended December 31, 2019
Assets		Amount
Current Assets:
Cash	7,400
Prepaid rent	5,500
Accounts receivable	6,510
Total Current Assets		19,410
Plant,Assets :
Office furniture	9,250
Office equipment	13,500
Building	100,000
Total plant asset		122,750
Total Assets		142,160
Liabilities and Owners Equity
Current Liabilities:
Accounts payable	3,000
Salaries payable	1,950
Total Current liabilities		4,950
Long term Liabilities:
Long term bank loan	83,000
Total Long term Liabilities		83,000
Owners Equity:
Wilson, capital ending	54,210
Total owners equity		54,210
Total Liabilities & Owners Equity		142,160

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