Question

A sole proprietorship was started on January 1, 2018, when it received $54,500 cash from Marlin Jones, the owner. During 2018, the company earned $51,600 in cash revenues and paid $22,160 in cash expenses. Jones withdrew $4,900 cash from the business during 2018. Required: Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's 2018 fiscal year.

Answer 1

Ending cash balance $ 79,040.00

Step-by-step explanation:

Income Statement

Revenues $ 51,600.00

Less: Expenses $(22,160.00)

Net Income $ 29,440.00

Capital Statement

Beginning capital $ 54,500.00

Add: Net Income $ 29,440.00

Less: Withdrawal $ (4,900.00)

Ending capital $ 79,040.00

Balance Sheet

Assets

Cash $ 79040.00

Total $ 79,040.00

Equity and Liabilities

Capital $ 79,040.00

Total $ 79,040.00

Cash Flow Statement

Cash from operating activities

Cash from revenue $ $51,600.00

Cash paid for expenses $(22,160.00)

Cash generated (A) $ 29,440.00

Cash flow from financinag activities

Capital introduced $ 54,500.00

Cash withdrawal $ (4,600.00)

Cash generated (B) $ 49,900.00

Net cash generated (A+B(+) $

70,040.00

Add: Opening cash balance $ -

Ending cash balance $ 79,040.00