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
