PROBLEM A: These items are taken from the financial statements of Steve Nols, CP

Question

PROBLEM A: These items are taken from the financial statements of Steve Nols, CPA for 2016. Steve Nols, CPA (beginning of year) 32,000 Steve Nols, CPA Withdrawals 3,000 Utilities expense 2,000 Equipment, net of accumulated depreciation Accounts payable 15,300 Cash 8,900 Notes payable (due January 2020) 3,000 Service revenue 74,000 Prepaid insurance 3,500 Repair expense 1,800 Depreciation expense 3,300 Accounts receivable 14,200 Insurance expense 2,200 Salaries and wages expense47,000 38,400 Instructions: Prepare a single step income statement, an owner's equity statement, and a classified balance sheet as of December 31, 2016.

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.

1. Single Step Income Statement Service Revenue 74000 -Total Revenue 74000 Expenses: Utilities Expense 2000 Repair Expense 1800 Depreciation Expense 3300 Insurance Expense 2200 Salaries and Wages Expense 47000 -Total Expense 56300 Net Income 17700 2. Owner's Equity Statement Steve Noles Beginning 32000 Less: Drawing -3000 Add: Net Income 17700 Owner's Equity 46700 3. Classified Balance Sheet Current Assets: Cash 8900 Accounts Receivable 14200 Prepaid Insurance 3500 Total Current Assets 26600 Property Plant Equipment Equipment Net of Dep 38400 Total Assets 65000 Current Liabilities Accounts Payable 15300 Note Payable 3000 Owner's equity 46700 Total 65000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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