Assessment Task 1

Marcus Enterprise
Income Statement
For the year ended December 31, 2010

Fees Earned $59,500

Expenses
Wage Expenses $19,000
Rent Expenses $7,000
Depreciation Expenses $3,500
Total Expenses $29,500
Net Income $30,000

An income statement is a rich source of information about the key factors responsible for a company’s profitability. It gives you
timely updates because it is generated much more frequently than any other statement. The income statement shows a company’s
expense, income, gains, and losses, which can be put into a mathematical equation to arrive at the net profit or loss for that time
period. This information helps you make timely decisions to make sure that your business is on a good financial footing.

Marcus Enterprises
Statement of Owner’s Equity
For the Year Ended December 31, 2010
 Damien Marcus, Capital, January 1, 2010 $0
Investment during the year 8,000
Net income for the Year Ended December 31, 2010 $30,000
$38,000
Less Withdrawals $2,000
Increase in Owner’s Equity $36,000
Damien Marcus, Capital, December 31, 2010 $36,000

The statement of owner's equity reports the changes in company equity, from an opening balance to and end of period balance. The
changes include the earned profits, dividends, inflow of equity, withdrawal of equity, net loss, and so on.

Marcus Enterprises
Balance Sheet
December 31, 2010

ASSETS LIABILITIES
Current Assets Current Liabilities
 Cash $26,500 Accounts Payable $11,000
Accounts Receivable $7.000 Wages Payable $1,000
Supplies $1.000 Total Liabilities $12,000
Total Current Assets $34,000
Property, Plant and Equipment
Equipment $18,500
Less AD $5,000 OWNER’S EQUITY
Total Property, Plant and Equipment $13,500 Damien Marcus, Capital $36,000
Total Assets $48,000 Total Liabilities, Owner’s Equity $48,000

balance sheets are an important tool to help managers, lenders, and investors analyze a company's financial status and capabilities.