Assignment 3 PDF

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Assignment 3...

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Assignment 3 By Muaz Waheed Section-A1 Q1) No as to say that the business had incurred a net loss of $8,000 would be wrong when in fact, the excess of the withdrawals over the net income for the period is a decrease in the amount of owner’s equity in the business. Q2) 1. Accounts Payable Would appear on the balance sheet. 2. Accounts Receivable Would appear on the balance sheet. 3. Andrew King, Capital Would NOT appear on the balance sheet. 4. Cash Would appear on the balance sheet. 5. Fees Earned Would appear on the balance sheet. 6. Land Would NOT appear on the balance sheet. 7. Rent Expense Would appear on the balance sheet. 8. Supplies Would appear on the balance sheet. 9. Wages Expense Would appear on the balance sheet. 10. Wages Payable Would appear on the balance sheet.

Q3) Statement of owner’s equity For year ended April 30th, 2019

b) Because the owner’s equity must be reported on the balance sheet. Q4)

Income statement for the month ended August 31 Fees Earned Revenue Expenses Wage expenses 550000 Rent expense 35000 Supplies expense 8500 Miscellaneous expense 11400 Total expense Net income

783000

604900 178100

Q5) Ebony Interiors Balance sheet February 29th, 2019 Assets Cash ………………..$320,000 Accounts receivable…….. $800,000 Supplies………………..$30,000 Total assets……..$1,150,000

Liabilities Accounts payable…….$310,000 Owner’s equity Justin berk capitol………….$840,000 Total liabilities and …$1,150,000 Owners equity

Ebony Interiors Balance sheet March 31st, 2019 Assets Cash ………………..$380,000 Accounts receivable…….. $960,000 Supplies………………..$35,000 Total assets……….$1,375,000

Liabilities Accounts payable…….$400,000 Owner’s equity Justin berk capitol………….$975,000 Total liabilities and …$1,375,000 Owners equity

B) Owner’s equity, March 31 Owner’s equity, February 28 Net income

$975,000 840,000 $135,000

C) Owner’s equity, March 31 Owner’s equity, February 28 Increase in owner’s equity Add withdrawal Net income

$975,000 840,000 $135,000 50,000 $185,000

Q6)

Income statement for month ended December 31, 2019 Fees earned (Revenue) Expenses Rent 36000 Utilities 28500 Supplies 4100 Wages 510000 Miscellaneous 6400 Total expenses 585000 Net income Statement of owner’s Equity Ian Eisele Capital Jan 1,2019 Net income Withdrawals Increase in owner’s equity Owners equity

Assets Cash………………..190500 Accounts receivable…..285000 Supplies…………………5500 Land……………….544000 Total Assets………..1025000

912,500

327500

670000 327500 (42000) 285000 955500 Balance sheet Liabilities Accounts payable Owner’s equity Capitol Total liabilities and owner’s equity

69500 955500 1025000

Q6 part4)Ian Eisele capitol $955,500 will be present on both balance sheet and owner’s equity...