Problem 7 Lu Chang opened Chang Catering on May 1, 20X3. The adjusted trial bala
ID: 2334202 • Letter: P
Question
Problem 7 Lu Chang opened Chang Catering on May 1, 20X3. The adjusted trial balance for May 31, 20X3, follows: Chang Catering Adjusted Trial Balance May 31, 20X3 Cash Food Inventory Prepaid Expenses Equipment Accumulated Depreciation, Equipment Accounts Payable Notes Payable Lu Chang, Capital Sales Wages Cost of Food Sold Supplies Expense Other Expenses Total $ 9,000 1,200 1,000 20,000 $ 800 2,000 15,000 10,000 20,500 7,500 5,200 800 3,600 48,300 $ 48,300 Required: 1. Prepare an income statement. 2. Prepare a balance sheet. 3. Prepare the statement of owner's equity.Explanation / Answer
Answer:
Income Statement
Balance Sheet
Lu Chang Capital 10000
+Current Year Profit 3400
Equipment 20000
-Accumulated Dep 800
1000
Owner Equity= Assets- Liability
= 30400-10000+2000+15000
=3400
Income Statement
Particular Amount Particlar Amount To Cost of Food Sold 5200 By Sales 20500 To Gross Profit c/d 15300 20500 20500 To wages 7500 By Gross Profit c/d 15300 To Supply Expenses 800 To Other Expenses 3600 To Net Profit 3400 15300 15300Balance Sheet
Liabilities $ Amount Asset $ AmountLu Chang Capital 10000
+Current Year Profit 3400
13400Equipment 20000
-Accumulated Dep 800
19200 Account Payable 2000 Food Inventory 1200 Notes Payable 15000 Prepaid Expenses1000
Cash 9000 30400 30400Owner Equity= Assets- Liability
= 30400-10000+2000+15000
=3400