Question

A sole proprietorship was started on January 1, 2014, when it received $30,000 cash from Alex Ard, the owner. During 2014, the company earned $50,000 in cash revenues and paid $22,300 in cash expenses. Ard withdrew $10,000 cash from the business during 2014. Required Prepare an income statement for Ard’s 2014 fiscal year.

Answer 1

Answer: Income Statement

Step-by-step explanation:

Revenue. $50,000

Less

Expenses. $22,000

Profit. $28,000

Note: drawings of the owner does not have any effect on the profit or loss of the business. There for the drawings is just a note.