Question

Hey, I'm struggling on how to work this out, can someone help break this down for me?

SARA'S LAUNDRY Adjusted Trial Balance April 30, 2015 $5,400 325 11,125 Cash $ 1,170 Laundry supplies 1,930 Prepaid insurance 600 Laundry equipment 20,600 Accumulated amortization, laundry equipment Accounts payable Sara Vergara, capital Sara Vergara, withdrawals 4,800 Laundry services revenue Salaries expense 6,920 Rent expense 1,200 Utilities expense 950 Insurance expense 400 Totals $38,570 21,720 $38,570 Required: Use the above Adjusted Trial Balance to create Sara's Laundry's Income Statement, Statement of Changes in Owner's Equity and Balance Sheet.

Answer 1

21,720 SARA'S LAUNDRY income statement april 30, 2015 service revenue less expenses salary expense rent expense utilities expense insurance expense total expenses net income 6920 1200 950 400) 9470 12,250 statement of changes in owners equity sara vergara capital 11125 add net income 12,250 subtotal 23375 less withdrawls 4800 net increase in owners capital (ending balance ) 18575

SARA'S LAUNDRY balance sheet april 30, 2015 assets cash prepaid insurance laundry supplies laundry equipment accumulated dep equiment total assets 1170 600 1930 20600 -5400 18900 liabilities and shareholders equity accounts payable capital balance ending 325 18575 total liabilities and shareholders equity 18900