Sanyu Sony started a new business and completed these transactions during Decemb

Question

Sanyu Sony started a new business and completed these transactions during December.

2.1. Prepare an income statement for the current month.

2.2. Prepare a statement of owner's equity for the current month.

2.3. Prepare a balance sheet as of the end of the month.

3. Prepare a statement of cash flows for the current month. (Cash outflows should be indicated with a minus sign.)

Dec. 1 Sanyu Sony transferred $68,000 cash from a personal savings account to a checking account in the name of Sony Electric. 2 The company rented office space and paid $1,100 cash for the December rent. 3 The company purchased $14,800 of electrical equipment by paying $6,600 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased office supplies by paying $700 cash. 6 The company completed electrical work and immediately collected $1,400 cash for these services. 8 The company purchased $2,900 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $6,700. 18 The company purchased $310 of office supplies on credit. 20 The company paid $2,900 cash for the office equipment purchased on December 8. 24 The company billed a client $800 for electrical work completed; the balance is due in 30 days. 28 The company received $6,700 cash for the work completed on December 15. 29 The company paid the assistant’s salary of $1,300 cash for this month. 30 The company paid $540 cash for this month’s utility bill. 31 Sanyu Sony withdrew $990 cash from the company for personal use.

Explanation / Answer

2.1

2.2

2.3

3.

Working:

SONY ELECTRIC Income statement for the current month Service Revenue 8900 Expenses: Rent Expense 1100 Salary Expenses 1300 Utility Expenses 540 Total Expenses 2940 Net income 5960

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