1.

Prepare a Statements of Financial Position for the Lone Pine Cafe as of Nov, 2009
Loan Pine Café
Statements of Financial Position
As of November 2009
Assets
Current Assets
Cash register $1.400
Food and beverages $2.800
Prepaid license $1.428
Checking Account $10.172
Total Current Assets $15.800
Fixed Assets
Equipment $53.200
Total Fixed Assets $53.200
Total Assets $69.000

Liabilities and Equity

Liabilities
Current Liabilities
Account Payable $ 21.000
Total Liabilities $ 21.000
Owner's Equity
Mr. Antonie $16.000
Mrs. Antonie $16.000
Mrs. Landers $16.000
Total Equity $48.000
Total Liabilities and Equity $69.000

Notes:
Checking Account = (Account Payable + Owners' Equity) - (Cash Register + Food and
Beverages + Prepaid License + Equipment)
2. Balance Sheet March 30th 2010
Loan Pine Café
Balance Sheet
As of March 2010
Assets
Current Assets
Cash $1.341
Account receivable $870
Food and beverages $2.430
Mr Antoine's Clothes $750
Prepaid Expense License $595
Total Current Assets $5.986
Fixed Assets
Equipment $54.600
Depreciation -$2.445
Total Fixed Assets $52.155
Total Assets $58.141

Liabilities
Current Liabilities
Account Payable $1.583
Total Current Liabilities $1.583
Non Current Liabilities
Bank Loan $18.900
Total Non-Current Liabilities $18.900
Total Liabilities $20.483

Owner's Equity
Mr. Antonie $12.552,67
Mrs. Antonie $12.552,67
Mrs. Landers $12.552,67
Total Equity $37.658,00
Total Liabilities and Equity $58.141

Notes:
Each owner's equity = (Total Assets + Total Liabilities) / 3

3.
If the partnership was ended on March 30, 2010, the partners wouldn't be able to receive their
proportional share because their assets won't bring enough cash to pay the liabilities. Also the
Loan Pine Café has obligation toprecede payment to bank and payment to supplier.
1. Enter the trial balance on a worksheet and complete the worksheet
Adjusted Trial Statement of
Trial Balance Adjustments Income Statement
Accounts Balance Financial Position
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash $2.720 $2.720 $2.720
Account receivable $2.700 $2.700 $2.700
Supplies $1.500 $950 $550 $550
Equipment $11.000 $11.000 $11.000
Accumulated Depreciation - Equipment $1.250 $250 $1.500 $1.500
Accounts payable $2.500 $2.500 $2.500
Unearned Service Revenue $550 $260 $290 $290
Share capital - ordinary $10.000 $10.000 $10.000
Dividends $1.100 $1.100 $1.100
Service revenue $6.300 $260 $6.560 $6.560
Salaries and wages expenses $1.300 $480 $1.780 $1.780
Miscellaneous expenses $280 $280 $280
$20.600 $20.600 $0
Supplies Expense $950 $950 $950
Depreciation expense $250 $250 $250
Salaries and Wages Payable $480 $480 $0 $480
$1.940 $1.940 $21.330 $21.330 $3.260 $6.560
Net Income $3.300 $3.300
Totals $6.560 $6.560 $18.070 $18.070
2. Prepare an income statement and retained earnings
Firmament Roofing
Income Statement
As of March 31
Revenues
Service revenues $6.560
Total revenues $6.560
Expenses
Salaries and wages expenses $1.780
Miscellaneous expenses $280
Supplies expense $950
Depreciation expense $250
Total expenses $3.260
Net Income $3.300

Firmament Roofing
Retained Earnings Statement
As of March 31
Retained earnings, March 1 $0
Add: Net income $3.300
$3.300
Less: Dividends $1.100
Retained Earnings, March 31 $2.200
3. Journalize the adjusting entries

GENERAL JOURNAL
Date Account Tittles and Explanation Ref. Debit Credit
Supplies Expenses $950
Supplies $950
Depreciation expense $250
Accumulated Depreciation - Equipment $250
Unearned Service Revenue $260
Service revenue $260
Salaries and wages expenses $480
Salaries and Wages Payable $480

4. Journalize the closing entries

GENERAL JOURNAL
Date Account Tittles and Explanation Ref. Debit Credit
Service Revenue $ 6.560
Income Summary $ 6.560

Income Summary $ 3.260

Salaries and wages expenses $ 1.780
Miscellaneous expenses $ 280
Supplies Expense $ 950
Depreciation expense $ 250

Income Summary $ 2.200

Retained Earnings $ 2.200

Retained Earnings $ 1.100

Dividends $ 1.100