Refer to the trial balance provided in Exercise 4-12 and prepare a balance sheet as of the end of the month. The ending balance in the owner’s capital account is $67,620.
Exercise 4-12
After posting the journal entries from Exercise 4-11, Kamilos Management Services reports the following trial balance.
Required
1. Prepare an income statement for the month.
2. Prepare a statement of owner’s equity for the month.
Kamilos Management Services opens for business and completes these transactions in September.
Sept. 1 Tom Kamilos, the owner, invests $38,000 cash along with office equipment valued at $15,000
in the business.
2 Prepaid $9,000 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent for $9,000.)
4 Made credit purchases for $8,000 in office equipment and $2,400 in office supplies. Payment
is due within 10 days.
8 Completed work for a client and immediately received $3,280 cash.
12 Completed a $15,400 project for a client, who must pay within 30 days.
13 Paid $10,400 cash to settle the payable created on September 4.
19 Paid $1,900 cash for the premium on an 18-month insurance policy. (Hint: Debit Prepaid
Insurance for $1,900.)
22 Received $7,700 cash as partial payment for the work completed on September 12.
24 Completed work for another client for $2,100 on credit.
28 Tom Kamilos withdrew $5,300 cash for personal use.
29 Purchased $550 of additional office supplies on credit.
30 Paid $860 cash for this month’s utility bill.
Required
Prepare general journal entries to record these transactions (use account titles listed below). Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); T. Kamilos, Capital (301); T. Kamilos, Withdrawals (302); Service Fees Earned (401); and Utilities Expense (690).
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