Question

Guy McKinley started the McKinley Charter Service at the beginning of August 2019. On August 31, 2019, the accounting records of the business showed the following information. Equipment $ 18,900 Rent Expense $ 6,500 Accounts Receivable 2,000 Cash 7,600 Fees Income 36,500 Salaries Expense 12,400 Boats 100,000 Utilities Expense 1,600 Gasoline Expense 9,200 Supplies 5,200 Loans Payable 79,500 Initial Investment 48,000 Owners’ Withdrawal 5,150 Accounts Payable 4,550 Prepare an income statement and a statement of owner's equity for the month and a balance sheet as of August 31, 2019. Next Visit question mapQuestion 4 of 10 Total 4 of 10 Pre

Answer 1

Solution:

McKinley Charter Service
Income Staement
For the month ended Aug 31, 2019
Particulars	Amount
Fees Income	$36,500.00
Expenses:
Rent Expense	$6,500.00
Salaries expense	$12,400.00
Utilities Expense	$1,600.00
Gasoline Expense	$9,200.00
Total Expenses	$29,700.00
Net Income	$6,800.00

McKinley Charter Service
Statement of owner's equity
For the month ended Aug 31, 2019
Particulars	Amount
Beginning capital	$0.00
Add: Owner's investment	$48,000.00
Add: Net Income	$6,800.00
Less: Owner's withdrawl	$5,150.00
Ending owner's equity	$49,650.00