A sole proprietorship was started on January 1, 2014, when it received $30,000 c

Question

A sole proprietorship was started on January 1, 2014, when it received $30,000 cash from Alex Ard, the owner. During 2014, the company earned $50,000 in cash revenues and paid $22,300 in cash expenses. Ard withdrew $10,000 cash from the business during 2014.

Prepare an income statement for Ard’s 2014 fiscal year.

Prepare a capital statement (statement of changes in equity) for Ard’s 2014 fiscal year.

Prepare a balance sheet for Ard’s 2014 fiscal year.

Prepare a statement of cash flows for Ard’s 2014 fiscal year. (Amounts to be deducted should be indicated with a minus sign.)

A sole proprietorship was started on January 1, 2014, when it received $30,000 cash from Alex Ard, the owner. During 2014, the company earned $50,000 in cash revenues and paid $22,300 in cash expenses. Ard withdrew $10,000 cash from the business during 2014.

Explanation / Answer

income statement for Ard’s 2014 fiscal year. ALEX ARD SOLE PROPRIETORSHIP Income Statement For the Year Ended December 31, 2014 Cash Revenue $        50,000 Cash Expenses $        22,300 Net Income for the period $        27,700 Capital Statement (Statement of changes in Equity ) for Ard's 2014 fiscal year ALEX ARD SOLE PROPRIETORSHIP Capital Statement For the Year Ended December 31, 2014 Beginning Capital Balance $        30,000 Add: Surplus from Business $        27,700 Less:Cash withdrawals $      -10,000 Ending Capital Balance $        47,700 Balance sheet for Ard's 2014 fiscal year ALEX ARD SOLE PROPRIETORSHIP Balance Sheet For the Year Ended December 31, 2014 Assets Current Assets: Cash In Hand ($ 30,000 + $ 27,700 - $ 10,000) $        47,700 Total Assets $        47,700 Liabilities Stockholder's Equity $                  47,700 Liabilities $                              - Total liabilities and stockholder's equity $                  47,700 statement of cashflows for Ard's 2014 ALEX ARD SOLE PROPRIETORSHIP Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities (Direct method) Cash Revenue $        50,000 Cash Expenses $      -22,300 Net Cash flow from operating activities (A) $        27,700 Cash flow from Investing Activities (B) $                    - Cash flow from Financing Activities Amount withdraw by Proprietor $      -10,000 Net Cash flow from Financing Activities © $      -10,000 Net Cahnges in Cash (A) + (B) + © $        17,700 Add Beginning Cash Balance $        30,000 Ending Cash Balance $        47,700

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.