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Financial Statement Exercise Questions for Assignment | ABM 111, Assignments of Agricultural engineering

Material Type: Assignment; Class: Records & Business Planning I; Subject: Agriculture Business Mgmt; University: Morgan Community College; Term: Unknown 1989;

Typology: Assignments

Pre 2010

Uploaded on 08/18/2009

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Financial Statement Exercise
The transactions you entered into the T Accounts could also be entered into the form
below (this has been done for you).
1. Owner invested $1,500 cash and equipment worth $1,000 from his personal funds.
2. Owner received $3,000 in sales.
3. Utilities bill due but unpaid, $75.
4. Owner withdraws $500 for personal use.
5. $1,000 advance on operating loan.
6. Paid $120 for office supplies.
$5,880 = $5,880
==================
Assets = Liabilities + Owner’s Equity
Cash
DR
+ Equip-
ment
DR
= Operating
Loan
CR
Accounts
Payable
CR
+ Owner’s
Capital
CR
- With-
drawls
DR
+ Income
CR
- Expense
DR
1. 1500 1000 = 2500
2. 3000 = 3000
3. = 75 75
4. -500 = 500
5. 1000 = 1000
6. -120 = 120
4880 + 1000 = 1000 75 + 2500 - 500 + 3000 - 195
pf3

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Financial Statement Exercise

The transactions you entered into the T Accounts could also be entered into the form below (this has been done for you).

  1. Owner invested $1,500 cash and equipment worth $1,000 from his personal funds.
  2. Owner received $3,000 in sales.
  3. Utilities bill due but unpaid, $75.
  4. Owner withdraws $500 for personal use.
  5. $1,000 advance on operating loan.
  6. Paid $120 for office supplies.

Assets = Liabilities + Owner’s Equity Cash

DR

  • Equip- ment DR

= Operating Loan CR

Accounts Payable CR

  • Owner’s Capital CR
  • With- drawls DR
  • Income

CR

  • Expense

DR

  1. 1500 1000 = 2500

Part 1: From the totals in the form above complete the Trial Balance

Business Owner Trial Balance, September 1, xxxx

Debit Credit Cash

Equipment

Accounts Payable

Operating Loan

Owner’s Equity, Capital Owner’s Equity, Withdrawals Income

Expense

Totals

====================== ======================

Part 2: Construct an Income Statement using the information above. Lines have been added to guide your entries.

Business Owner Income Statement Year to Date, September 1, xxxx

Income _____________________

Operating Expenses

Office Supplies ____________________ Utilities ____________________ Total Operating Expense ______________________ Net Income ______________________