Problem 1 - 2 :: Home work submitted by ARNAB BHATTACHARYA

Assets = Liabilities
Accounts Notes
Transactions Cash + Receivable + Supplies + Equipment = Payable

Opening Balance on $5,000.00 $1,500.00 $500.00 $6,000.00

31, July
Collected AR $1,200.00 -$1,200.00
Paid Cash for AP -$2,800.00
Collected cash $3,000.00 $4,500.00

Equipment Purchase -$400.00 $2,000.00

Paid Salary -$2,500.00

Rent Paid -$900.00

Advertising expense -$400.00

Cash Withdrawal -$700.00

Money Borrowed $2,000.00 $2,000.00
Utility Expenses

Total $3,500.00 + $4,800.00 + $500.00 + $8,000.00 = $2,000.00

$16,800.00

JUDI SALEM
Income Statement
For the month ending August 31, 2017
Revenues
Service Revenue $7,500.00
Expenses
Rent expense $900.00
Salary expense $2,500.00
Advertising expense $400.00
Utilities expense $270.00
Total Expense $4,070.00
Net Income $3,430.00
 JUDI SALEM
Owner's Equity Statement
For the month ending August 31, 2017

Add: Investments $8,800.00

Net Income $ 3,430.00 $ 12,230.00
Net Income $ 12,230.00
Less : Drawings $700.00
Owner's Capital on August 31 $ 11,530.00

JUDI SALEM
Balance Sheet
For the month ending August 31, 2017

Assets
Cash $3,500.00
Accounts receivable $4,800.00
Supplies $500.00
Equipment $8,000.00
Total Assets $ 16,800.00

Liabilities and Owner's Equity

Liabilities
Notes Payables $2,000.00
Accounts payable $3,270.00
Total Liabilities $5,270.00

Owner's equity
Owner's capital $ 11,530.00
Total Liabilities and owner's equity $ 16,800.00
Liabilities + Owner's Equity
Accounts Owner's Owner's
+ Payable + Capital - Drawings + Revenues - Expenses

$4,200.00 $8,800.00

-$2,800.00
$7,500.00

$1,600.00

-2,500.00
-900.00

-$400.00

-$700.00

$270.00 -$270.00

+ $3,270.00 + $8,800.00 - -$700.00 + $7,500.00 - -$4,070.00

$16,800.00

Net Income / Loss = $3,430.00