1 ing Concepts and Procedures ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
The functions of ing are to analyze, record, classify, summarize, report, and interpret financial information. Sole proprietorship—1 owner; unlimited liability; easy to form; limited life Partnership—2 or more owners; unlimited liability; easy to form; limited life Corporation—Stockholders; limited liability; difficult to form; unlimited life Service, merchandise, or manufacturing Bookkeeping is the recording function of the ing process. The three elements of the basic ing equation are assets, liabilities, owner's equity. Capital is the owner's current investment or equity in the assets of a business. It is one subdivision of owner's equity. True. The sum of the left side of the equation (assets) must equal the sum of the right side of the equation (liabilities and owner's equity). False. That is the income statement. False. Revenue is a subdivision of owner's equity. Owner's equity is subdivided into Capital, Withdrawals, Revenue, and Expenses. False. It is non-business expense; a subdivision of owner's equity. False. As expenses increase, owner's equity decreases. Revenue less Expenses; an income statement shows performance. False. It calculates ending capital. The question in this case is whether Paul should be allowed to "pad" his expense with an additional $100 of expenses. I feel that Paul should only be allowed to expense those items that are business related. Paul's argument that he is entitled to an additional $100 is not a valid assumption. However, he should be allocated money for any business expenses during the weekend.
SM-1
SOLUTIONS TO CHAPTER 1 CLASSROOM DEMONSTRATION EXERCISES SET A 1. A. B. C. D. E. F.
A L A A OE A
2. A. B. C.
Liabilities Assets s Payable
3. A. B.
I S
4. $34,000 + $21,000 =$55,000 5. B. D. F. G.
J. Penny, Capital J. Penny, Withdrawals Advertising Expense Taxi Fees Earned
6. C. s Payable D. Grooming Fees Earned 7. A,B,D 8. A. B. C. D. E. F. G. H.
IS BS BS BS IS IS OE BS
9. A. B. C. D.
OE BS BS IS
SM-2
SOLUTIONS TO EXERCISES SET A 1A-1.
A. $27,000 B. $75,000 C. $35,000
1A-2.
=$9,000 + $18,000 =$6,000 + $69,000 =$10,000 + $25,000
ASSETS
+ OWNER'S EQUITY + $112,000 + +
= LIABILITIES = = = $750
A. $112,000 B. $ 0 C. $750 1A-3.
RAUCSHER COMPANY BALANCE SHEET APRIL 30, 201X
Assets Cash Equipment
Liabilities $52 0 0 0 28 0 0 0
Total Assets
s Payable Total Liabilities
14 0 0 0
Owner's Equity B. Rauscher, Capital
66 0 0 0
Total Liabilities and Owner's Equity
$80 0 0 0
$14 0 0 0
$80 0 0 0
1A-4. ASSETS
=
s Cash
A.
+
Rec.
+
Equip.
s =
Payable
90,000 +
C.
(50)
D.
13,700
E.
+
+
B.
F. G.
Computer
LIABILITIES + OWNER'S EQUITY
10,200
B.
B.
Baker,
Baker,
Capital
–
Withd.
+ Revenues –
Expenses
90,000
$10,200 (50) 13,700
29,000
29,000
(4,200) (1,510)
4,200 1,510
, as withdrawals or expenses increase, the end result is to reduce owner's equity .
SM-3
EXERCISES (CONTINUED) 1A-5. (A) FRECHETTE REALTY INCOME STATEMENT MONTH ENDED SEPTEMBER 30, 201X Revenue: Professional Fees Operating Expenses: Salaries Expense Utilities Expense Rent Expense Total Operating Expenses Net Income
$
$3
5 0 0
1 $2
2 2 5 2 7 5
$1
8 4 0
2 $3
0 5 0 8 9 0
6 0 0 1 5 0 4 7 5
(B) FRECHETTE REALTY STATEMENT OF OWNER’S EQUITY MONTH ENDED SEPTEMBER 30, 201X S. Frechette, Capital, September 1, 201X Net Income for September Less: Withdrawals for September
$2
2 7 5 (2 2 5)
Increase in Capital S. Frechette, Capital, September 30, 201X
(C) FRECHETTE REALTY BALANCE SHEET SEPTEMBER 30, 201X
Liabilities
Assets
Cash s Receivable Office Equipment
Total Assets
$5 7 0 0 9 9 0 7 2 0 0
Liabilities s Payable Owner's Equity S. Frechette, Capital Total Liabilities and Owner's Equity
$13 8 9 0
SM-4
$10 0 0 0 3 8 9 0 $13 8 9 0
SET B 1B-1.
A B C
1B-2.
$30,000 $65,000 $15,000
=$15,000 + $15,000 =$10,000 + $55,000 =$ 3,000 + $12,000
ASSETS
+ OWNER'S EQUITY + $118,000 + +
= LIABILITIES = = = $800
A. $118,000 B. $ 0 C. $800 1B-3.
RAUSHER COMPANY BALANCE SHEET APRIL 30, 201X
ASSETS Cash Equipment
LIABILITIES AND OWNER’S EQUITY $18 0 0 0 40 0 0 0
Total Assets
Liabilities s Payable Owner's Equity B. Rausher, Capital Total Liabilities and Owner's Equity
$58 0 0 0
$25 0 0 0 33 0 0 0 $58 0 0 0
1B-4. ASSETS
=
s Cash
A.
+
Rec.
+
Equip.
s =
Payable
60,000 +
C.
(150)
D.
14,000
E.
+
+
B.
F. G.
Computer
LIABILITIES + OWNER'S EQUITY
10,000
B.
B.
Baker,
Baker,
Capital
–
Withdr
+ Revenues –
Expenses
60,000
10,000 150 14,000
30,000
30,000
(3,500) (1,470
3,500 1,470
, as withdrawals or expenses increase, the end result is to reduce owner's equity .
SM-5
EXERCISES (CONTINUED) 1B-5. (A) FRECHETTE REALTY INCOME STATEMENT MONTH ENDED SEPTEMBER 30, 201X Revenue: Professional Fees Operating Expenses: Salaries Expense Utilities Expense Rent Expense Total Operating Expenses Net Income
$
$4
0 0 0
1 $2
1 6 0 8 4 0
4 0 0 3 6 0 4 0 0
(B) FRECHETTE REALTY STATEMENT OF OWNER'S EQUITY MONTH ENDED SEPTEMBER 30, 201X S. Frechette, Capital, September 1, 201X Net Income for September Less: Withdrawals for September
$10 7 7 0 $2
8 4 0 (8 0 0)
Increase in Capital S. Frechette, Capital, September 30, 201X
2 0 4 0 $12 8 1 0
(C) FRECHETTE REALTY BALANCE SHEET SEPTEMBER 30, 201X
LIABILITIES AND OWNER'S EQUITY
ASSETS
Cash s Receivable Office Equipment
Total Assets
$7 0 5 0 1 0 6 0 6 7 0 0
Liabilities s Payable Owner's Equity S. Frechette, Capital Total Liabilities and Owner's Equity
$14 8 1 0
SM-6
$2 0 0 0 12 8 1 0 $14 8 1 0
SOLUTIONS TO A PROBLEMS PROBLEM 1A-1 MIKE'S NAIL SPA
ASSETS
=
LIABILITIES 0
+
OWNER'S EQUITY 17,000 17,000
17,000
TRANSACTION A NEW BALANCE TRANSACTION B NEW BALANCE TRANSACTION C NEW BALANCE TRANSACTION D
17,000 17,000 0 17000 6,100 23,100 (700)
= = = = = =
0 6,100 6,100 (700)
+ + + + + + +
ENDING BALANCE
22,400
=
5,400
+
17,000 17,000
PROBLEM 1A-2 SHIRE’S INTERNET SERVICE BALANCE SHEET
SEPTEMBER 30, 201X LIABILITIES AND OWNER'S EQUITY
ASSETS
Cash Equipment Building
$35 0 0 0 29 0 0 0 30 0 0 0
Liabilities s Payable Owner's Equity Shire, Capital
Total Assets
Total Liabilities and Owner's Equity
$94 0 0 0
SM-7
$17 0 0 0
77 0 0 0
$94 0 0 0
SM-8
ENDING BALANCE
H.
14,825
(600) +
+
+
15,425
BALANCE
+
+
+
+
+
15,425
(150)
15,575
(325)
G.
BALANCE
F.
BALANCE
E.
+
15,9000
BALANCE
+
+
+
15,900
900
D.
BALANCE
C.
+
15,000
BALANCE
+
+
+
15,000
15,000
3,600
3,600
3,600
3,600
3,600
3,600
0
0
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+ Receivables+
Β.
BALANCE
A.
Cash
ASSETS
6,500
6,500
6,500
6,500
6,500
6,500
6,500
6,500
0
Office Equipment
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
7,400
7,400
900
6,500
6,500
6,500
6,500
6,500
6,500
0
s Payable
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
R. + Ferlito, Capital
= LIABILITIES +
TYPING SERVICERON FERLITO
–
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
600
600
0
0
0
0
0
0
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
4,500
4,500
4,500
4,500
4,500
3,600
900
900
0
0
–
-
–
-
–
-
–
-
-
-
-
-
-
-
-
-
1,375
1,375
900
475
150
325
325
0
0
0
0
R. Typing – Ferlito, + – Expenses Revenue Withd.
OWNER'S EQUITY
PROBLEM 1A-3
PROBLEM 1A-4 (A) WELDON STENCILING SERVICE INCOME STATEMENT MONTH ENDED NOVEMBER 30, 201X Revenue: Stenciling Fees Operating Expenses: Advertising Expense Repair Expense Travel Expense Supplies Expense Rent Expense Total Operating Expenses Net Income
$
1 1 2 2 2 1 5 3 7
$2
6 0 0
$1
8 8 5 7 1 5
$2
5 1 0
$3
8 1 5 3 2 5
0 0 5 5 5
(B) WELDON STENCILING SERVICE STATEMENT OF OWNER'S EQUITY MONTH ENDED NOVEMBER 30, 201X J. Weldon, Capital, November 1, 201X Net Income for November Less: Withdrawals for November Increase in Capital J. Weldon, Capital, November 30, 201X
$1
7 1 5 (9 0 0)
(C) WELDON STENCILING SERVICE BALANCE SHEET NOVEMBER 30, 201X ASSETS Cash s Receivable Equipment
Total Assets
LIABILITIES AND OWNER'S EQUITY $1
9 0 0 6 5 0 1 0 2 5
$3
5 7 5
SM-9
Liabilities s Payable
$
2 5 0
Owner's Equity J. Weldon, Capital
3
3 2 5
Total Liabilities and Owner's Equity
$3
5 7 5
SM-10
=
LIABILITIES +
OWNER'S EQUITY
SM-11
+
+ + + + + + + +
+ + + + + + + + + + + + + + + +
+ + +
75
75
75
75
75
75
0 150 150 (75) 75
0
0
0
0
0
+
+ + + + + + + +
+ + + + + + + + + + + + + + + +
+ + +
=
3,800
4,800
4,800
3,800 1,000 4,800
3,800
=
=
=
=
=
=
=
3,800
3,800
=
=
=
=
=
3,800
3,800
3,800
1,600 2,200 3,800
1,600
=
3,600
2,100 1,000 3,100 500 3,600
2,100
2,100
2,100
2,100
2,100
2,100
0 2,200 2,200 (100) 2,100
0
+
+ + + + + + + +
+ + + + + + + + + + + + + + + +
+ + +
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000 45,000
–
– – – -
-
-
80
80
80
80
80
0 80
0
0
0
0
0
0
0
0
+
+ + + + + + + +
+ + + + + + + + + + + + + + + +
+ + +
4,750
4,750
4,750
2,050 2,700 4,750
2,050
2,050
1,900 150 2,050
0 1,900 1,900
0
0
0
–
– – – – -
– – – – -
-
1,870
820 500 1,320 550
820
820
700 120 820
700
0 700 700
0
0
0
0
+Receivables+ EquipmentPayable = s+ Capital J. Trickett,– Withd J. Trickett,+ RevenueCatering– Expenses
AS
TRICKETT'S CATERING SERVICE
PROBLEM 1A-5
SM-12
43,400
BALANCE 3/28 BALANCE 3/29 BALANCE 4/1 BALANCE 4/5 BALANCE 4/8 BALANCE 4/10 BALANCE 4/15 BALANCE 4/17
47,075 (550) 46,525
END BAL.
47,075
44,375 2,700 47,075
BALANCE 4/20 BALANCE 4/25 BALANCE 4/28 BALANCE 4/30
44,500 75 44,575 (120) 44,455 (80)
43,400 (100) 43,300 1,900 45,200 (700) 44,500
45,000 45,000 (1,600)
3/25 BALANCE 3/27
Cash
SETS
PROBLEM 1A-5 (CONTINUED) (B) TRICKETT'S CATERING SERVICE BALANCE SHEET MARCH 31, 201X ASSETS Cash Equipment
$43 3 0 0 3 8 0 0
LIABILITIES AND OWNER'S EQUITY Liabilities $2 1 0 0 s Payable Owner's Equity J. Trickett, Capital
Total Assets
$47 1 0 0
45 0 0 0
Total Liabilities and Owner's Equity
$47 1 0 0
(C) TRICKETT'S CATERING SERVICE INCOME STATEMENT MONTH ENDED APRIL 30, 201X Revenue: Catering Fees Operating Expenses: Salaries Expense Telephone Expense Rent Expense Supplies Expense Total Operating Expenses Net Income
$
SM-13
7 1 5 5
0 2 0 5
$4
7 5 0
1 $2
8 7 0 8 8 0
0 0 0 0
(D) TRICKETT'S CATERING SERVICE STATEMENT OF OWNER'S EQUITY MONTH ENDED APRIL 30, 201X J. Trickett, Capital April 1, 201X Net Income for November Less: Withdrawals for April Increase in Capital J. Trickett, Capital, April 30, 201X
$45 0 0 0 $2 8 8 0 (8 0) 2 8 0 0 $47 8 0 0
(E) TRICKETT'S CATERING SERVICE BALANCE SHEET APRIL 30, 201X ASSETS Cash s Receivable Equipment
Total Assets
LIABILITIES AND OWNER'S EQUITY $46, 5 2 5 7 5 4 8 0 0
$51 4 0 0
Liabilities s Payable Owner's Equity J. Trickett, Capital Total Liabilities and Owner's Equity
SM-14
$3 6 0 0 47 8 0 0 $51 4 0 0
SOLUTIONS TO B PROBLEMS PROBLEM 1 B-1 MIKE'S NAIL SPA ASSETS
= LIABILITIES
TRANSACTION A NEW BALANCE TRANSACTION B NEW BALANCE TRANSACTION C NEW BALANCE TRANSACTION D
24,000 24,000 0 24,000 6,100 30,100 (900)
= = = = = =
ENDING BALANCE
29,200
=
+
OWNER'S EQUITY 24,000 24,000
0 6,100 6,100 (900)
+ + + + + + +
5,200
+
24,000
0
24,000 24,000
PROBLEM 1 B-2 SHIRE'S INTERNET SERVICE BALANCE SHEET SEPTEMBER 30, 201X ASSETS Cash Equipment Building
Total Assets
LIABILITIES AND OWNER'S EQUITY $48 0 0 0 54 0 0 0 55 0 0 0
$157 0 0 0
Liabilities s Payable
$15 0 0 0
Owner's Equity Shire, Capital
142 0 0 0
Total Liabilities and Owner's Equity
SM-15
$157 0 0 0
= LIABILITIES +
OWNER'S EQUITY
SM-16 +
3,100
+
29,345
+
(500) +
+
29,845 + 3,100
+
+
+
29,845 + 3,100
+
(130) +
+
3,100
29,975 +
+ +
3,100
30,400 +
+
+
+
(425) +
3,100
0
+
30,400 +
400 +
+
30,000 + 0
+
+
+
30,000 + 0
+
30,000 +
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
0
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
5,750
5,750
750
5,000
5,000
5,000
5,000
5,000
5,000
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
–
-
–
-
-
-
-
-
-
-
-
-
-
-
-
-
500
500
0
0
0
0
0
0
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
3,500
3,500
3,500
3,500
3,500
3,100
400
400
0
0
–
-
–
-
–
-
–
-
–
-
-
-
-
-
-
-
1,305
1,305
750
555
130
425
425
0
0
0
0
R, Cash+ Receivables+ EquipmentOfficePayable = s+ Capital R. Ferlito,– Ferlito, + RevenueTyping– Expenses Withd.
ASSETS
RON FERLITO TYPING SERVICE
PROBLEM 1B-3
SM-17
BALANCEENDING
H.
BALANCE
G.
BALANCE
F.
BALANCE
E.
BALANCE
D.
BALANCE
C.
BALANCE
B.
BALANCE
A.
PROBLEM 1 B-4 (A) WELDON STENCILING SERVICE INCOME STATEMENT MONTH ENDED NOVEMBER 30, 201X Revenue: Stenciling Fees Operating Expenses: Advertising Expense Repair Expense Travel Expense Supplies Expense Rent Expense Total Operating Expenses Net Income
$
1 1 5 5 5 5 1 7
$3
0 0 0
$2
9 4 0 0 6 0
0 0 0 5 5
(B) WELDON STENCILING SERVICE STATEMENT OF OWNER'S EQUITY MONTH ENDED NOVEMBER 30, 201X J. Weldon, Capital, November 1, 201X Net Income for November Less: Withdrawals for November Increase in Capital J. Weldon, Capital, November 30, 201X
$2
$1
1 2 5
1 $2
7 6 0 8 8 5
0 6 0 (3 0 0)
(C) WELDON STENCILING SERVICE BALANCE SHEET NOVEMBER 30, 201X ASSETS Cash s Receivable Equipment
Total Assets
LIABILITIES AND OWNER'S EQUITY $2
$3
4 0 0 6 5 0 6 8 5
7 3 5
Liabilities s Payable
$
8 5 0
Owner's Equity J. Weldon, Capital
2
8 8 5
Total Liabilities and Owner's Equity
$3
7 3 5
SM-18
= LIABILITIES +
OWNER'S EQUITY
SM-19
100
100
100
100
100
100
0 200 200 (100) 100
0
0
0
0
+ + + + + + + + + + + + + + + + + + + + + + + + + + +
+ + + + + + + + + + + + + + + + + + + + + + + + + + +
0
+
+
4,600
4,600
3,700 900 4,600
3,700
3,700
3,700
3,700
3,700
3,700
3,700
0 700 700 3,000 3,700
= = = = = = = = = = = = = = = = = = = = = = = = = = =
=
3,800
2,000 900 2,900 900 3,800
2,000
2,000
2,000
2,000
2,000
2,000
0 3,000 3,000 (1,000) 2,0000
0
+ + + + + + + + + + + + + + + + + + + + + + + + + + +
+
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000 – – – –
-
90
90
90
90
0 90 90
0
0
0
0
0
0
0
0
+ + + + + + + + + + + + + + + + + + + + + + + + + + +
+
4,100
4,100
4,100
2,700 1,400 4,100
2,700
2,700
2,500 200 2,700
0 2,500 2,500
0
0
0
– – – – – – –
-
1,560 900 2,460 250 2,710
1,560
1,560
1,500 60 1,560
1,500
0 1,500 1,500
0
0
0
0
+Receivables+ Equipment Payable = s+ CapitalJ. Trickett,– Withd J. Trickett,+ RevenueCatering– Expenses
ASSETS
TRICKETT'S CATERING SERVICE
PROBLEM 1B-5
SM-20
30,000 (700) 29,300
BALANCE 3/27 BALANCE 3/28 BALANCE 3/29 BALANCE 4/1 BALANCE 4/5 BALANCE 4/8 BALANCE 4/10 BALANCE 4/15 BALANCE 4/17 BALANCE 4/20 BALANCE 4/25 BALANCE 4/28 BALANCE 4/30 END BAL.
19,405 (250) 30,400
19,405
29,300 100 29,400 (60) 29,340 (90) 29,250 1,400 30,650
29,300 (1,000) 28,300 2,500 30,800 (1,500) 29,300
30,000
3/25
Cash
PROBLEM 1 B-5 (CONTINUED) (B) TRICKETT'S CATERING SERVICE BALANCE SHEET MARCH 31, 201X ASSETS Cash Equipment
Total Assets
LIABILITIES AND OWNER'S EQUITY $28 3 0 0 3 7 0 0
$32 0 0 0
Liabilities s Payable
$2
0 0 0
Owner's Equity J. Trickett, Capital
30
0 0 0
Total Liabilities and Owner's Equity
$32 0 0 0
(C) TRICKETT'S CATERING SERVICE INCOME STATEMENT MONTH ENDED APRIL 30, 201X Revenue: Catering Fees Operating Expenses: Salaries Expense Telephone Expense Rent Expense Supplies Expense
$1
Total Operating Expenses Net Income
SM-21
5 0 6 9 0 2 5
$4
1 0 0
2 $1
7 1 0 3 9 0
0 0 0 0
(D) TRICKETT'S CATERING SERVICE STATEMENT OF OWNER'S EQUITY MONTH ENDED APRIL 30, 201X J. Trickett, Capital, April 1, 201X Net Income for April Less: Withdrawals for April Increase in Capital J. Trickett, Capital, April 30, 201X
$30 0 0 0 $1
3 9 0 (9 0) 1 3 0 0 $31 3 0 0
(E) TRICKETT'S CATERING SERVICE BALANCE SHEET APRIL 30, 201X ASSETS Cash s Receivable Equipment
Total Assets
LIABILITIES AND OWNER'S EQUITY $30 4 0 0 1 0 0 4 6 0 0
Liabilities s Payable Owner's Equity J. Trickett, Capital Total Liabilities and Owner's Equity
$35 1 0 0
$3 8 0 0 31 3 0 0 $35 1 0 0
FINANCIAL REPORT PROBLEM SOLUTION—2010 Kellogg’s Annual Report
$444 - 334 $110 in millions
SM-22
SM-23 = =
600 600 600 600 $600 $5,900
+
+
+
+
+
1,200
1,200
1,200
1,200
$1,200
=
=
=
=
=
600
+
1,200
=
=
600
600
=
=
+
+
+
+$600
EquipmentOffice=
LIABILITIES
1,200
1,200
1,200
+$1,200
Shop EquipmentComputer+
=
$335
335
335
+85
250
250
250
250
+$250
s + Payable
+
+
+
+
+
+
+
+
+
$5,900
$4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
+$4,500
Freedman, Capital
–
–
$100
+100
WithdrawalsFreedman,+
OWNER'S EQUITY
+
+
+
+
+
$1,650
1,650
+1,200
450
450
+200
250
+$250
Revenue –
–
–
–
–
–
–
SANCHEZ COMPUTER
$485
485
485
+85 (Electric)
400
400
400
+$400 (Rent)
Expenses
CENTER
ON THE JOB--Sanchez Computer Center Solution
+
+
+
+
+
+
+
+
+
+
+
$250
2,750 BALANCE
+
+200 G.
+
250
2,550 BALANCE
+
+250 F.
+
250
2,300 BALANCE
250
–400 E.
3,950
J. –100 END BALANCE $3,850
+1,200
BALANCE
2,700 BALANCE
2,750
–600 C
I.
3,300 BALANCE
BALANCE
–1,200
H.
4,500
B.
$4,500+
BALANCE
A.
Cash
+
+
250
250 2,700 BALANCE
250
+$250 D.
+ Supplies
ASSETS
SANCHEZ COMPUTER CENTER INCOME STATEMENT FOR THE MONTH ENDED JULY 31, 201X Revenue: Service Revenue Operating Expenses: Rent Expense Electric Expense Total Operating Expenses Net Income
$
4 0 0 8 5
$1
6 5 0
00
$1
4 8 5 1 6 5
00 00
$4
5 0 0
00
$1 $5
0 6 5 5 6 5
00 00
00 00
SANCHEZ COMPUTER CENTER STATEMENT OF OWNER'S EQUITY FOR MONTH ENDED JULY 31, 201X T. Freedman, Capital, July 1, 201X Net Income for July Less: Withdrawals for July
$1
1 6 5 00 (1 0 0 00)
Increase in Capital T. Freedman, Capital, July 31, 201X
SANCHEZ COMPUTER CENTER BALANCE SHEET JULY 31, 201X SM-24
ASSETS Cash Supplies Computer Shop Equipment Office Equipment Total Assets
LIABILITIES AND OWNER'S EQUITY $3 1
$5
8 2 2 6
5 5 0 0
0 0 0 0
00 00 00 00
9 0 0 00
SM-25
Liabilities: s Payable Owners Equity T. Freedman, Capital Total Liabilities and Owner's Equity
$
3 3 5 00
5 $5
5 6 5 00 9 0 0 00