LE. 250,000 LE. 150,000 LE. 15,000 LE. 30,000 LE. 50,000 LE. 60,000 LE. 25,000 L
ID: 2545097 • Letter: L
Question
LE. 250,000 LE. 150,000 LE. 15,000 LE. 30,000 LE. 50,000 LE. 60,000 LE. 25,000 LE. 70,000 L.E. 30,000 LE 20,000 LE. 15,000 LE. 24,000 L.E. 15,000 LE. 10.000 LE. 20.000 LE 25,000 - Service revenue Buildings. Advertising expense. Accounts payable. -Cash. Salaries expense. Accounts roccivable. Accumulated .Notes payable. - Utility expense. Rent expense. Notes receivable. Prepaid insurance -Long-term investments Long-term notes payable. Hatim, Capital. Mortgage payable. LE. 25,000 LE 10,000 LE. 5,000 LE 40.000 LE 20,000 LE 5,000 Supplies expense. Office Equipment. Withdrawals - Interest expense. Depreciation expense-Equipment. Depreciation expense-Buildings LE. 5,000 LE. 6,000 LE. 16,000 Accumulated depreciation-BuildingsLE. 24000 Depreciation expense- office equipment. LE. 4,000 Interest revenue LE. 15,000 Instructions: (1) Prepare a classified statement in account form at December (2) Prepare a single-step income statement for the year ended (3) Prepare an owner's equity statement for the year ended 31, 2006. December 31,2006. December 31, 2006.Explanation / Answer
Answer 1. Balance Sheet At December 31, 2006 Assets Current Assets Cash 50,000.00 Accounts Receivable 25,000.00 Notes Receivable 15,000.00 Prepaid Insurance 10,000.00 Supplies 10,000.00 Total Current Assets 110,000.00 Long Term Investments Long Term Investments 20,000.00 Property, Plant & Equipment Buildings 150,000.00 Accumulated Depreciation - Buildings (24,000.00) 126,000.00 Equipment 70,000.00 Accumulated Depreciation - Equipment (30,000.00) 40,000.00 Office Equipment 40,000.00 Accumulated Depreciation - Office Equip. (16,000.00) 24,000.00 Total Property, Plant & Equipment 190,000.00 Total Assets 320,000.00 Liabilities & Owners' Equity Liabilities Current Liabilities Accounts Payable 30,000.00 Notes Payable 20,000.00 Toatl Current Liabilities 50,000.00 Long Term Liabilities Notes Payable - Long Term 25,000.00 Mortgage Payable 25,000.00 Total Long Term Liabilities 50,000.00 Total Liabilities 100,000.00 Owners' Equity 220,000.00 Total Liabilities & Owners' Equity 320,000.00 - Trial Balance For the Year Ended Dec 31, 2006 Dr. Amt. Cr. Amt. Cash 50,000.00 Accounts Receivable 25,000.00 Notes Receivable 15,000.00 Prepaid Insurance 10,000.00 Supplies 10,000.00 Long Term Investments 20,000.00 Buildings 150000 Accumulated Depreciation - Buildings 24,000.00 Equipment 70000 Accumulated Depreciation - Equipment 30,000.00 Office Equipment 40000 Accumulated Depreciation - Office Equip. 16,000.00 Accounts Payable 30,000.00 Notes Payable 20,000.00 Notes Payable - Long Term 25000 Mortgage Payable 25000 Hatim, Capital (Bal. Fig.) 114,000.00 Hatim, Withdrawls 20,000.00 Service Revenue 250,000.00 Interest Revenue 15,000.00 Advertising Expense 15000 Salaries Expense 60000 Utility Expense 15000 Rent Expense 24000 Supplies Expense 5000 Interest Expense 5000 Depreciation Expense - Equipment 5000 Depreciation Expense- Buildings 6000 Depreciation Expense - Office Equipment 4000 Total 549,000.00 549,000.00 Answer 2. Income Statement For the Year Ended Dec 31, 2006 Revenues Service Revenue 250,000.00 Interest Revenue 15,000.00 Total Revenues 265,000.00 Expenses Advertising Expense 15,000.00 Salaries Expense 60,000.00 Utility Expense 15,000.00 Rent Expense 24,000.00 Supplies Expense 5,000.00 Interest Expense 5,000.00 Depreciation Expense - Equipment 5,000.00 Depreciation Expense- Buildings 6,000.00 Depreciation Expense - Office Equipment 4,000.00 Total Expenses 139,000.00 Net Income 126,000.00 Answer 3. Statement of Owner's Equity Statement For the Year Ended Dec 31, 2006 Net Income 126,000.00 Withdrawls (20,000.00) Net Increase (Decrease) in Owners' Equity 106,000.00 Hatim, Capital 114,000.00 Total Owners' Equity 220,000.00
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