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
Office Supplies…… … ………500
Equipment…… …… … …… …15,000
Accounts Payable… …… ……9,750
Rya Page, Capital… …………28,200
Rya Page, Drawing………………5,000
Planning Fees Income………26,250
Office Supplies Expense……200
Rent Expense…… ……… … ………800
Salaries Expense…… … ………3,000
Utilities Expense………… ……700
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Rya’s Planning Services
Income Statement
For the Month Ending...
Service Income:
Planning Fees Income $26,250
Total Income $26,250
Less:
Office Supplies Expenses $200
Rent Expense 800
Salaries Expense 3,000
Utilities Expense 700
Total Expenses (4,700)
Net Income $21,550
Rya’s Planning Services
Balance Sheet
As of....
Assets:
Cash $21,500
Accounts Receivable 17,500
Office Supplies 500
Equipment 15,000
Total Assets 54,500
Liabilities & Owner's Equity
Liabilities
Accounts Payable 9,750
Total Liabilities 9,750
Owner's Equity
Raya Page, Beg. Capital 28,200
Add: Net Income 21,550
Less: Drawings (5,000)
Raya Page, End. Capital 44,750
Total Liabilities & Owner's Equity 54,500
To complete an Income Statement, Statement of Owner's Equity, and Balance Sheet for Rya's Planning Services, we need to organize the provided information into relevant categories.
Income Statement:
The Income Statement shows the financial performance of a business during a specific period. It lists the revenues and expenses, calculating the net profit or loss.
Revenue:
Planning Fees Income………26,250
Expenses:
Office Supplies Expense……200
Rent Expense…… ……… … ………800
Salaries Expense…… … ………3,000
Utilities Expense………… ……700
To calculate the net profit or loss, we subtract the total expenses from the total revenue:
Total Revenue: 26,250
Total Expenses: 4,700 (200 + 800 + 3,000 + 700)
Net Profit: 26,250 - 4,700 = 21,550
Statement of Owner's Equity:
The Statement of Owner's Equity shows the changes in the owner's capital over a specific period. It takes into account the owner's initial investment, net profits/losses, and any drawings made by the owner.
Owner's Capital (Beginning): 28,200
Net Profit: 21,550
Owner's Drawings: 5,000
Owner's Capital (Ending) = Owner's Capital (Beginning) + Net Profit - Owner's Drawings
Owner's Capital (Ending) = 28,200 + 21,550 - 5,000 = 44,750
Balance Sheet:
The Balance Sheet presents the financial position of a business at a specific point in time. It lists the assets, liabilities, and owner’s equity.
Assets:
Cash: 21,500
Accounts Receivable: 17,500
Office Supplies: 500
Equipment: 15,000
Total Assets: 21,500 + 17,500 + 500 + 15,000 = 54,500
Liabilities:
Accounts Payable: 9,750
Owner's Equity:
Owner's Capital: 44,750
Total Liabilities and Owner's Equity: 9,750 + 44,750 = 54,500
Now we have completed the Income Statement, Statement of Owner's Equity, and Balance Sheet for Rya's Planning Services using the provided information.