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    Accounting Lesson Balance Sheet and Income Statement

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    Sagar Sachdeva
    The Little Company was started in 2014 with an initial investment of $30,000 from the owner. From the trial balance on December 31, 2014, the following financial statements were prepared: 1. The income statement showed total revenue of $198,000 and total expenses of $114,000, resulting in net income of $84,000. 2. The statement of owner's equity showed an opening capital balance of $30,000, withdrawals of $14,000, and net income of $84,000, resulting in a net capital balance at the end of $100,000. 3. The balance sheet showed total assets of $127,300 equal to total liabilities and owner's

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    Accounting Lesson Balance Sheet and Income Statement

    Uploaded by

    Sagar Sachdeva
    207 views7 pages
    The Little Company was started in 2014 with an initial investment of $30,000 from the owner. From the trial balance on December 31, 2014, the following financial statements were prepared: 1. The income statement showed total revenue of $198,000 and total expenses of $114,000, resulting in net income of $84,000. 2. The statement of owner's equity showed an opening capital balance of $30,000, withdrawals of $14,000, and net income of $84,000, resulting in a net capital balance at the end of $100,000. 3. The balance sheet showed total assets of $127,300 equal to total liabilities and owner's

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    Accounting Lesson for students regarding preparation of Balance Sheet and Income Statement

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    The Little Company was started in 2014 with an initial investment of $30,000 from the owner. From the trial balance on December 31, 2014, the following financial statements were prepared: 1. The income statement showed total revenue of $198,000 and total expenses of $114,000, resulting in net income of $84,000. 2. The statement of owner's equity showed an opening capital balance of $30,000, withdrawals of $14,000, and net income of $84,000, resulting in a net capital balance at the end of $100,000. 3. The balance sheet showed total assets of $127,300 equal to total liabilities and owner's

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    207 views7 pages

    Accounting Lesson Balance Sheet and Income Statement

    Uploaded by

    Sagar Sachdeva
    The Little Company was started in 2014 with an initial investment of $30,000 from the owner. From the trial balance on December 31, 2014, the following financial statements were prepared: 1. The income statement showed total revenue of $198,000 and total expenses of $114,000, resulting in net income of $84,000. 2. The statement of owner's equity showed an opening capital balance of $30,000, withdrawals of $14,000, and net income of $84,000, resulting in a net capital balance at the end of $100,000. 3. The balance sheet showed total assets of $127,300 equal to total liabilities and owner's

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    Financial Statement - Critical Thinking Assignment

    Fall 2015
    The 12/31/2014 trial balance for the Little Company follows:
    Cash
    Accounts Receivable
    Prepaid Insurance
    Office Equipment
    Accounts Payable
    Unearned Service Revenue
    Notes Payable
    Capital
    Withdrawals
    Services Revenue
    Rent Revenue
    Salaries Expense
    Supplies Expense
    Insurance Expense
    Advertising Expense
    Utilities Expense

    28,900
    23,000
    24,600
    50,800
    $

    10,500
    6,800
    10,000
    30,000

    14,000
    184,000
    14,000

    80,000
    6,000
    12,000
    2,000
    14,000
    255,300

    ###

    The Little Company was started this year. The owner made investments of $30,000.
    From the trial balance prepare the following annual financial statements.
    1. Income Statement
    2. Statement of Owner's Equity
    3. Balance Sheet
    Properly format the statements and include headers and dates on all statements.

    The Little Company


    Income Statement
    For Year Ended Decemeber 31, 2041
    Revenue
    Service Revenue
    Rent Revenue

    184,000
    14,000
    198,000

    Expenses
    Salaries Expense
    Supplies Expense
    Insurance Expense
    Advertising Expense
    Utilities Expense
    Total expenses
    Net income(as on 31 December 2014)

    80,000
    6,000
    12,000
    2,000
    14,000
    114,000
    84,000

    Date
    Particulars
    1-Jan-14 Opening Capital
    Withdrawl
    31-Dec-14 Add: Net Income
    31-Dec-14 Net Capital At the end

    Cr Amount
    30,000

    Statement of Owner's Equity


    Dr Amount
    14,000

    84,000
    1,00,000

    's Equity

    Balance Sheet

    Liabilities and Shareholder's Equity


    Particulars
    Amount
    Accounts Payable
    $ 10,500
    Unearned Service Revenue
    6,800
    Notes Payable
    10,000
    Capital
    100,000
    $127,300

    Assets
    Particulars
    Cash
    Accounts Receivable
    Prepaid Insurance
    Office Equipment

    Amount
    $ 28,900
    23,000
    24,600
    50,800
    $127,300

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