I am doing the financial statements from T accounts. 6 Problem 3.5A Preparing fi
ID: 2330051 • Letter: I
Question
I am doing the financial statements from T accounts.
6 Problem 3.5A Preparing financial statements from T accounts. LO 3-3, 3-5, 3-6 The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. Transactions a. Guttery invested $80,000 In cash to start the business b. Pald $3,000 for the current month's rent c Bought office furmiture for $8,360 in cash. d. Performed services for $4,100 in cash. e. Pald $625 for the monthly telephone bill. f. Performed services for $7,000 on credit g. Purchased a computer and copler for $19,000; pald $6,500 in cash immedlately with the balance due In 30 days. h. Received $3,500 from credit clents L. Pald $2,000 in cash for office cleaning services for the month. J. Purchased additional office chalrs for $2,900; recelved credit terms of 30 days k. Purchased office equipment for $20,000 and pald half of this amount In cash Immedlately the balance ls due In 30 days. L Issued a check for $4,700 to pay salarles. for $2.900: recelved cre m. Performed services for $7.250 in cash n. Performed services for $8,000 on credit o. Collected $4,000 on accounts receivable from charge customers. p. Issued a check for $1,450 in partial payment of the amount owed for office chairs q. Pald $350 to a duplicating company for photocopy work performed during the month r. Paid $610 for the monthly electric bill. s Guttery withdrew $4,500 in cash for personal expenses Required: Prepare a trial balance, an income statement, a statement of owner's equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 2019. Determine the account balances before you start work on the financial statements Analyze: What is the change in owner's equity for the month of June? Complete this question by entering your answers in the tabs below. Trial Balance Indome Stmt of Statement Owners Eaty Balance Sheet AnalyzeExplanation / Answer
Answer
---Balances of Asset Accounts:
Transaction/Date
Cash
Accounts receivables
Computer & Copier
Office Furniture
Office Equipments
Beginning Balance
a
$ 80,000.00
b
$ (3,000.00)
c
$ (8,360.00)
$ 8,360.00
d
$ 4,100.00
e
$ (625.00)
f
$ 7,000.00
g
$ (6,500.00)
$ 19,000.00
h
$ 3,500.00
$ (3,500.00)
i
$ (2,000.00)
j
$ 2,900.00
k
$ (10,000.00)
$ 20,000.00
l
$ (4,700.00)
m
$ 7,250.00
n
$ 8,000.00
o
$ 4,000.00
$ (4,000.00)
p
$ (1,450.00)
q
$ (350.00)
r
$ (610.00)
s
$ (4,500.00)
Ending Balance
$ 56,755.00
$ 7,500.00
$ 19,000.00
$ 11,260.00
$ 20,000.00
---Balance of Liabilities & Equity Accounts
Transaction/Date
Accounts Payable
Capital
Withdrawals
Beginning Balance
a
$ 80,000.00
b
c
d
e
f
g
$ 12,500.00
h
i
j
$ 2,900.00
k
$ 10,000.00
l
m
n
o
p
$ (1,450.00)
q
r
s
$ 4,500.00
Ending Balance
$ 23,950.00
$ 80,000.00
$ 4,500.00
---Balances of revenues & expenses accounts:
Transaction/Date
Service revenue
Rent Expenses
Telephone Expenses
Office Cleaning service expenses
Salaries Expenses
Photocopy expenses
Electricity /Utilities expenses
a
b
$ 3,000.00
c
d
$ 4,100.00
e
$ 625.00
f
$ 7,000.00
g
h
i
$ 2,000.00
j
k
l
$ 4,700.00
m
$ 7,250.00
n
$ 8,000.00
o
p
q
$ 350.00
r
$ 610.00
s
Ending Balance
$ 26,350.00
$ 3,000.00
$ 625.00
$ 2,000.00
$ 4,700.00
$ 350.00
$ 610.00
Accounts title
Trial Balance
Debit
Credit
Cash
$ 56,755.00
Accounts receivables
$ 7,500.00
Computer & Copier
$ 19,000.00
Office Furniture
$ 11,260.00
Office Equipments
$ 20,000.00
Accounts Payable
$ 23,950.00
Capital
$ 80,000.00
Withdrawals/Drawings
$ 4,500.00
Service revenue
$ 26,350.00
Rent Expenses
$ 3,000.00
Telephone Expenses
$ 625.00
Office Cleaning service expenses
$ 2,000.00
Salaries Expenses
$ 4,700.00
Photocopy expenses
$ 350.00
Electricity /Utilities expenses
$ 610.00
TOTAL
$ 130,300.00
$ 130,300.00
Income Statement
for the period ending 30 June 2019
Revenues:
Service revenue
$ 26,350.00
Expenses:
Rent Expenses
$ 3,000.00
Telephone Expenses
$ 625.00
Office Cleaning service expenses
$ 2,000.00
Salaries Expenses
$ 4,700.00
Photocopy expenses
$ 350.00
Electricity /Utilities expenses
$ 610.00
Total Expenses
$ 11,285.00
Net Income
$ 15,065.00
Statement of Owner's Equity
30 June 219
Beginning Capital
$ -
Add: Capital Introduced
$ 80,000.00
$ 80,000.00
Add: Net Income
$ 15,065.00
Less: Withdrawals/Drawings
$ 4,500.00
Ending Capital Balance
$ 90,565.00
Balance Sheet
30-Jun-19
ASSETS
LIABILITIES
Cash
$ 56,755.00
Accounts Payable
$ 23,950.00
Accounts receivables
$ 7,500.00
Total current assets
$ 64,255.00
Total Liabilities
$ 23,950.00
Computer & Copier
$ 19,000.00
OWNER's EQUITY
Office Furniture
$ 11,260.00
Ending Capital Balance
$ 90,565.00
Office Equipments
$ 20,000.00
Total Plant Property & Equipment
$ 50,260.00
Total Equity
$ 90,565.00
Total Assets
$ 114,515.00
Total Liabilities & Equity
$ 114,515.00
Beginning Capital Balance = $ 0
Ending Capital Balance on June 30, 2019 = $ 90,565
Hence, during June 2019, the Change in Owner’s Equity = $ 90,565
Transaction/Date
Cash
Accounts receivables
Computer & Copier
Office Furniture
Office Equipments
Beginning Balance
a
$ 80,000.00
b
$ (3,000.00)
c
$ (8,360.00)
$ 8,360.00
d
$ 4,100.00
e
$ (625.00)
f
$ 7,000.00
g
$ (6,500.00)
$ 19,000.00
h
$ 3,500.00
$ (3,500.00)
i
$ (2,000.00)
j
$ 2,900.00
k
$ (10,000.00)
$ 20,000.00
l
$ (4,700.00)
m
$ 7,250.00
n
$ 8,000.00
o
$ 4,000.00
$ (4,000.00)
p
$ (1,450.00)
q
$ (350.00)
r
$ (610.00)
s
$ (4,500.00)
Ending Balance
$ 56,755.00
$ 7,500.00
$ 19,000.00
$ 11,260.00
$ 20,000.00
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