Answer:
Required: 1. Income statement for the month end March 31 .
$ $
Rental revenue 1,100
Consulting revenue 15,000
Total Revenue 16,100
Less Expenses :
Salaries expense 3,600
Advertising expense 520
Utilities expense 320
Rent expense 2,600 (7,040)
Net Income/(loss) 9,060
Required: 2. Statement of owner’s equity for the month end March 31.
Beginning Balance $0
Capital $14,000
Add Profit earned during the month $ 9,060
Less A. Lopez, Withdrawals ($2,600)
Ending Balance $20,460
Required: 3. Balance Sheet as at March 31.
Non Current Assets
Equipment $ 7,000
Total Non Current Assets $ 7,000
Current Assets
Office supplies $ 2,100
Cash $ 9,200
Prepaid insurance $1,600
Note receivable $ 3,100
Accounts receivable $4,100
Total Current Assets $20,100
Total Assets $27,100
Equity and Liabilities
Equity
Equity $20,460
Total Equity $20,460
Liabilities
Accounts payable $ 3,220
Unearned revenue $ 420
Note payable $ 3,000
Total Liabilities $6,640
Total Equity and Liabilities $27,100
Step-by-step explanation:
First prepare the Income statement to determine the profit earned during the year.
Then, include this profit in the statement of owners equity to determine the month end balance.
Lastly, prepare the balance sheet, remember to include the equity balance you have calculated.