Accounting

posted by .

I have to prepare a income statement with the following info. I don't understand it.
cash 11,360
Accounts Receivable 14,000
office supplies 3,250
land 46,000
office equipment 18,000
accounts payable 8,500
owner investments 84,000
cash withdrawals by owner 2,000
consulting fees earned 14,000
rent expense 3,550
salaries expenses 7,000
telephone expense 760
misc. expenses 580
Any help would be appreciated. I just need to see it done one time so I can catch on.


Dan, I think for this question you only need to use the fees earned and the expenses to determine net income.
As I recall the formula is
Revenues - Expenses = Net Income
The only revenue entry I see is the fees earned. You need to add up the expenses and subtract them from the fees. T think the form looks something like this:
Revenuse
Fees earned xxxx
Expenses
list each expense
Exp xxxx
Exp xxxx
Exp xxxx
Subtotal each section and subtract expenses from revunues
___________
Net Income = difference of the two subtotals

All of the other entries look like balance sheet accounts to me.
The withdrawals by owner would appear on a statement called change in owner's equity.
Your book should have examples of each of these statements and how to prepare them.


Thanks,
I was getting mixed up on what revenues were. I had it all mixed up. I was thinking that cash was a revenue.


I should also mention to be sure and have a title on the document that states clearly what it is and a date to tell what time period the statement is for, quartely or annual.
Cash is a permanent account on the balance sheet. For the income statement we're only interested in the temporary accounts.


Would cash be considered owners equity or would just owners investments be considered equity?


Cash is not owner's equity. It's a permanent asset account. The owner's equity or capital account, or in this case I think owner investments, is the owner's equity.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Introduction to Accounting

    The proprietors of two businesses, L.L. Sams Company and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheet to view. L.L. Sams Company Balance …
  2. accounting

    Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance sheet as of December 31, 2005. Account Title Debit Credit Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,000 Accounts …
  3. Accounting

    Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance sheet as of December 31, 2005. 4-4 Account Title Debit Credit Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,000 …
  4. Accounting

    The following are all of the accounts of Mean Green Company that have a balance at the end of August, the company's first month of operation: Accounts receivable $11,000 Cash $10,100 Equipment 39,700 Advertising expense 3,000 Service …
  5. Accounting

    Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance sheet as of December 31, 2005.Account Title Debit Credit Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,000 Accounts …
  6. Basic Accounting

    Complete an Income Statement, Statement of Owner's Equity, and Balance Sheet using the information provided below for Rya’s Planning Services. Cash… …… ……… … … … ………$21,500 Accounts Receivable………17,500 …
  7. Accounting

    Complete an Income Statement, Statement of Owner's Equity, and Balance Sheet using the information provided below for Rya’s Planning Services. Cash… …… ……… … … … ………$21,500 Accounts Receivable………17,500 …
  8. Accounting

    Statement of Owner's Equity I've tried to get it to balnce with the amount of on my balance sheet of $54,500.00 but can not can you help Cash… …… ……… … … … ………$21,500 Accounts Receivable………17,500 Office …
  9. accounting 100

    The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising …
  10. Accounting

    Cash $10,000 Accounts Payable $7,000 Accounts Receivable $6,400 Mortgage Payable $65,000 Supplies $1,500 Long-term Debt $36,000 Building $150,000 Notes Payable $9,000 Equipment $80,000 Preferred Stock $32,000 Merchandise Inventory …

More Similar Questions