Financial Statement - Critical Thinking Assignment

Fall 2015
The 12/31/2014 trial balance for the Little Company follows:
Cash
Accounts Receivable
Prepaid Insurance
Office Equipment
Accounts Payable
Unearned Service Revenue
Notes Payable
Capital
Withdrawals
Services Revenue
Rent Revenue
Salaries Expense
Supplies Expense
Insurance Expense
Advertising Expense
Utilities Expense

28,900
23,000
24,600
50,800
$

10,500
6,800
10,000
30,000

14,000
184,000
14,000

80,000
6,000
12,000
2,000
14,000
255,300

###

The Little Company was started this year. The owner made investments of $30,000.
From the trial balance prepare the following annual financial statements.
1. Income Statement
2. Statement of Owner's Equity
3. Balance Sheet
Properly format the statements and include headers and dates on all statements.

The Little Company

Income Statement
For Year Ended Decemeber 31, 2041
Revenue
Service Revenue
Rent Revenue

184,000
14,000
198,000

Expenses
Salaries Expense
Supplies Expense
Insurance Expense
Advertising Expense
Utilities Expense
Total expenses
Net income(as on 31 December 2014)

80,000
6,000
12,000
2,000
14,000
114,000
84,000

Date
Particulars
1-Jan-14 Opening Capital
Withdrawl
31-Dec-14 Add: Net Income
31-Dec-14 Net Capital At the end

Cr Amount
30,000

Statement of Owner's Equity

Dr Amount
14,000

84,000
1,00,000

's Equity

Balance Sheet

Liabilities and Shareholder's Equity

Particulars
Amount
Accounts Payable
$ 10,500
Unearned Service Revenue
6,800
Notes Payable
10,000
Capital
100,000
$127,300

Assets
Particulars
Cash
Accounts Receivable
Prepaid Insurance
Office Equipment

Amount
$ 28,900
23,000
24,600
50,800
$127,300