s. rhepare the Statemetof Owner\'s Equity for 20x4 Problem 7 Lo Ghanic opened Ch

Question

s. rhepare the Statemetof Owner's Equity for 20x4 Problem 7 Lo Ghanic opened Chang Catering om May 1, 2013. The adjusted tril balance for May s31. 20X3, follows: Chang Catering Adjusted Trial Balance May 31, 20x3 Cash Food Inventory Prepaid Expenses Equipment Accumulated Depreciation, Equipment Accounts Payable Notes Payable Lu Chang, Capital $ 9,000 20,000 2,000 15,000 10,000 20,500 7,500 5,200 800 Wages Cost of Food Sold Supplies Expense Other Expenses Total $ 48,300 S 48,300 ired: 1. Prepare an income statement. 2. Prepare a balance sheet 3. Prepare the statement of owner's equity all of Which of the futh han the

Explanation / Answer

Income statement Revenues: Sales 20500 Total revenues and gains (A) 20500 Expenses and losses: Cost of foods sold 5200 Wages 7500 Supplies expense 800 Other expenses 3600 Total expenses (B) 17100 Net income (A)-(B) 3400 Statement of Owner's equity $ Beginning balance 10000 Plus: Net income 3400 Ending balance 13400 Balance sheet $ $ Assets Cash 9000 Food inventory 1200 Prepaid expense 1000 Equipment 20000 Less: Accumulated depreciation 800 19200 Total assets 30400 Liabilities Accounts payable 2000 Notes payable 15000 Total liabilities 17000 Lu chang, capital 13400 Total liabilities and owner's equity 30400

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