Question

DKAM UUR NEIGHBOR'S PAPER) - in the columns below, indicate whether each transaction caused an an increase ), or no change (NC) in assets, liabilities, and owner's equity. (20%) Transaction Liabilities ), a decrease 1. Investment by owner 2. Paid cash on account Assets Owner's Equity 3. Purchase office Supplies on Account 4. Collection of accounts receivable 5. Withdrawal of cash by owner 6. Billed customers for services performed 7. Paid rent expense 8. Paid cash on accounts payable 9. Purchased equipment; signed a note payable 10. Borrowed money from the bank 2. Use the following accounts and information to prepare, in good form, an income statement. statement of owner's equity, and balance sheet for Talbot Industries for the month ended July 31, 2017. (45%) Accounts Payable Accounts Receivable Buildings Cash Commissions Earned Andreas Talbot, Capital, July 1, 2017 $ 3,100 1,400 22,000 15,600 22,700 $ 8,000 Andreas Talbot, Withdrawals Insurance Expense Land Notes Payable Rent Expense Salaries Expense 2,200 77,900 45,000 3,300 2,400 10,000 Supplies 400

Answer 1

SLUTION : 1
SR. No,	TRANSACTION	ASSETS	LIABILITIES	ONWER'S EQUITY
1	Investment by owner	"+"	NC	"+"
2	Paid Cash on account	"-"	NC	NC
3	Purchases office supplies on account	"+"	NC	NC
4	Collection of Account Receivable	NC	NC	NC
5	Withdrawal of Cash by owner	"-"	NC	"-"
6	Billed customers for services performed	"+"	NC	"+"
7	Paid rent Expenses	"-"	NC	"-"
8	Paid cash on account payable	"-"	"-"	NC
9	Purchase equipment , Signed a note payable	"+"	"+"	NC
10	Borrowed money from the bank	"+"	"+"	NC
SOLUTION : 2
	INCOME STATEMENT
	Commissions Earned	$             22,700
	Less: Expenses:
	Insurance expenses	$                2,200
	Rent Expenses	$                2,400
	Salaries Expenses	$             10,000
	Total Expenses	$             14,600
	Net Income	$                8,100
	STATEMENT OF OWNER'S EQUITY ACCOUNT
	(ANDROS TALBOT)
	Opening Capital	$             77,900
	Add: Income of the month	$                8,100
	Less: Withdrawals	$                8,000
	Closing Capital	$             78,000
	ANDROS TALBOT
	BALANCE SHEET
	PERIOD ENDED JULY 31, 2017
		AMOUNT		AMOUNT
	ASSETS		LIABILITIES
	CURRENT ASSETS		CURRENT LIABILITIES
	Cash	$             15,600	Account Payable	$           3,100
	Supplies	$                   400	Notes Payable	$           3,300
	Account Receivable	$                1,400
	FIXED ASSETS
	Building	$             22,000	EQUITY
	Land	$             45,000	Andrea Talbot , Capital July 31, 2017	$         78,000
	TOTAL ASSETS	$             84,400	TOTAL OF LIABILITES & EQUITY	$         84,400