Respuesta :
Answer and Explanation:
The preparation of income statement is shown below:-
Haman accounting services
Income Statement
For the year ended December 31, 2019
Particulars Amount
Fees income $24,000
Total revenue $24,000
Less: Operating expenses
Salaries expenses ($3,700)
Utilities expenses ($1,800)
Total operating expenses ($5,500)
Net operating income $18,500
2. The Preparation of Statement of changes in owners equity is shown below:-
Haman accounting services
Statement of changes in owners equity
For the year ended December 31, 2019
Particulars Amount
Erik Haman' capital as on
1st Jan 2019 $24,500
Add: Earned net income $18,500
Total $43,000
Less: Erik Haman's Drawings $3,700
Wilson' capital as on 31
December 2019 $39,300
3. The Preparation of balance sheet is prepared below:-
Haman accounting services
Balance sheet
For the year ended December 31, 2019
Particulars Amount
Assets
Current Assets
Cash $6,700
Accounts receivable $2,700
Supplies $1,700
Prepaid Rent $19,000
Total current assets $30,100
Fixed (Long-Term) Assets
Equipment $18,000
Total fixed assets $18,000
Total assets $48,100
Liabilities and Owner's Equity
Current Liabilities
Accounts payable $8,800
Total current liabilities $8,800
Long-Term Liabilities
Total long-term liabilities $0
Owner's Equity
Erik Haman's Capital $39,300
Total owner's equity $39,300
Total Liabilities and Owner's Equity $48,100
