Reinforce Your Skills EA2-R1 Create Financial Statements for Pro Painting Inc. I
ID: 2328407 • Letter: R
Question
Reinforce Your Skills EA2-R1 Create Financial Statements for Pro Painting Inc. In this exercise, you will create a monthly income statement, statement of owner's equity, and balance sheet in Excel for Pro Painting Inc. With the exception of the Giovanni Keith, Capital account (the balance for which is from 1/1/2016), the company had the following account balances as of 1/31/2016. Accounts Receivable Auto Expense Cash Delivery Expense Giovanni Keith, Capital- 1/1/2016 Giovanni Keith, Drawing Insurance Expense $600 $950 Notes Payable $3,100 Rent Revenue $350 Service Revenue $5,050 $500 Tools $1,800 Maintenance Expense $800 $450 $800 $3,600 $700 $1,100 Supplies 1. Open a Blank Workbook and save the file in your Chapter 02 folder as: EA2-R1-FinancialStatements-[YourName] 2. If necessary, use the New Sheet button to add worksheet tabs for a total of three. 3. Follow these steps to rename the tabs: Double-click the first worksheet tab and type: Income statement . Right-click the second worksheet tab, choose Rename, and type: Statement of .. . Select the third worksheet, choose Home >Cells FormatRename Sheet, and type: Balance Sheet On the Income Statement tab, type the company name in cell A1, the statement name in cell A2, and the date in an appropriate format in cell A3. 4. 5. Highlight the range A1:D3, choose Home->Alignment->Merge & Center 6. 7. Merge and center the contents in the ranges A1:C1, A2:C2, and A3:C3. Merge Across, and then center the text. On the Statement of OE. tab, type the company name in cell A1, the statement name in cell A2, and the date in an appropriate format in cell A3. 8. Repeat steps 6-7 on the Balance Sheet tab, taking care to use the correct statement name (cell A2) and date format (cell A3). Enter Data for the Income Statement 9. On the Income Statement tab, type a revenue header in cell ASExplanation / Answer
INCOME STATEMENT
SERVICE REVENUE
RENT REVENUE
3600
800
INSURANCE EXPENSES
AUTO EXPENSE
MAINTAINENCE EXPENSE
DELIVERY EXPENSE
1800
950
800
350
STATEMENT OF OWNER'S EQUITY
BALANCE SHEET
ASSET-
CASH
ACCOUNT RECEIVABLE
SUPPLIES
TOOLS
3100
600
700
1100
LIABILITY-
NOTES PAYABLE
CAPITAL-
OWNERS CAPITAL
PROFIT OF THE YEAR
450
4550
500
DESCRIPTION AMOUNT ( $ )SERVICE REVENUE
RENT REVENUE
3600
800
TOTAL REVENUE 4400INSURANCE EXPENSES
AUTO EXPENSE
MAINTAINENCE EXPENSE
DELIVERY EXPENSE
1800
950
800
350
TOTAL EXPENSE 3900 NET INCOME 500