Prob.

42B
1.
Income Statement
For the Year Ended July 31, 2008
Revenues:
Service fees .................................................................
Rent revenue ...............................................................
Total revenues .........................................................
Expenses:
Salary expense ............................................................
Depreciation expenseequipment ...........................
Rent expense ...............................................................
Supplies expense ........................................................
Utilities expense ..........................................................
Depreciation expensebuildings ..............................
Repairs expense..........................................................
Insurance expense ......................................................
Miscellaneous expense ..............................................
Total expenses.........................................................
Net income ..........................................................................

$525,000
4,500
$529,500
$219,000
28,500
25,500
22,950
15,900
15,600
12,450
3,000
5,100
348,000
$181,500

Statement of Owners Equity

For the Year Ended July 31, 2008
Chad Tillman, capital, August 1, 2007 ..............................
Net income for the year .....................................................
Less withdrawals................................................................
Increase in owners equity ................................................
Chad Tillman, capital, July 31, 2008 .................................

$340,500
$181,500
30,000
151,500
$492,000

Prob. 42B

Continued
Balance Sheet
July 31, 2008
Assets

Liabilities

Current assets:
Current liabilities:
Cash .............................................
$ 13,950
Accounts payable ............ $ 33,300
Accounts receivable ...................
41,880
Salaries payable ...............
3,300
Supplies .......................................
8,400
Unearned rent ...................
1,500
Prepaid insurance .......................
7,500
Total liabilities .....................
$ 38,100
Total current assets .................
$ 71,730
Property, plant, and equipment:
Land..............................................
$180,000
Owners Equity
Buildings ...................................... $360,000
Chad Tillman, capital ..........
492,000
Less accum. depreciation .......... 217,200 142,800
Equipment.................................... $258,270
Less accum. depreciation .......... 122,700 135,570
Total property, plant, and
equipment...............................
458,370 Total liabilities and
Total assets .....................................
$530,100 owners equity ..................

$530,100

Prob. 42B

Concluded

2.
2008
July 31

31

31

31

Service Fees ........................................................

Rent Revenue ......................................................
Income Summary...........................................

525,000
4,500

Income Summary ................................................

Salary Expense ..............................................
Depreciation ExpenseEquipment .............
Rent Expense .................................................
Supplies Expense ..........................................
Utilities Expense ............................................
Depreciation ExpenseBuildings ...............
Repairs Expense............................................
Insurance Expense ........................................
Miscellaneous Expense ................................

348,000

Income Summary ................................................

Chad Tillman, Capital ....................................

181,500

Chad Tillman, Capital .........................................

Chad Tillman, Drawing ..................................

30,000

529,500

219,000
28,500
25,500
22,950
15,900
15,600
12,450
3,000
5,100

181,500

30,000