Consider the following worksheet for J. Tull, as of October 31 comma 201 X.Octob
ID: 2343188 • Letter: C
Question
Consider the following worksheet for
J. Tull,
as of October 31 comma 201 X.October 31, 201X.
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From the completed worksheet, prepare
a.
October.
b.
October
c.
October
201 Upper X201X.
a. Prepare an income statement for
October
Begin by preparing the heading and then complete the rest of the statement.
J. Tull
Income Statement
For the Month Ended October 31, 201X
Revenue:
Revenue from Clients
$46
Operating Expense:
Rent Expense
$10
Wage Expense
14
Store Supplies Expense
2
Insurance Expense
1
Depreciation Expense, Store Equipment
4
Total Operating Expenses
31
Net income
$15
b. Prepare a statement of owner's equity for
October
Start with the heading and then complete the rest of the statement. (There were no new investments from the owner during the accounting period.)
J. Tull
Statement of Owner's Equity
For the Month Ended October 31, 201X
J. Tull, Capital, October 1, 201X
$5
Net Income for October
15
Less:
Withdrawals for October
(1)
Increase
in Capital
14
J. Tull, Capital, October 31, 201X
$19
c. Prepare the balance sheet. Start with the heading, then complete the asset portion of the statement, and lastly, complete the liabilities and owner's equity sections of the statement. (For the asset portion of the statement, select the
long-term
asset account(s) last.)
J. Tull
Balance Sheet
October 31, 201X
Assets
Cash
$13
Accounts Receivable
5
Prepaid Insurance
9
Store Supplies
7
Store Equipment
$11
Less:
Accumulated Depreciation, Store Equipment
Total assets
J. Tull
Worksheet
Month Ended October 31, 201X
Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Titles
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
13
13
13
Accounts Receivable
5
5
5
Prepaid Insurance
10
1
9
9
Store Supplies
9
2
7
7
Store Equipment
11
11
11
Accumulated Depreciation, Store Equipment
1
4
5
5
Accounts Payable
13
13
13
J. Tull, Capital
5
5
5
J. Tull, Withdrawals
1
1
1
Revenue from Clients
46
46
46
Rent Expense
10
10
10
Wage Expense
6
8
14
14
Totals
65
65
Depreciation Expense, Store Equipment
4
4
4
Insurance Expense
1
1
1
Store Supplies Expense
2
2
2
Wages Payable
8
8
8
Totals
15
15
77
77
31
46
46
31
Net Income
15
15
Totals
46
46
46
46
PrintDone
a.
an income statement forOctober.
b.
a statement of owner's equity forOctober
c.
a balance sheet as ofOctober
31,201 Upper X201X.
Explanation / Answer
Income Statement: Revenue from client 46 Less: Expenses Rent expense 10 wages expenses 14 Depreciation expenses 4 Insurance expenses 1 Store suupplies expenses 2 31 Net Income 15 Statement of Owner's equity: Beginning capital 5 Add: Chnages in capital Net Income of the year 15 Withdrawals -1 Increase in Capital 14 Capital at the end 19 Balance Sheet: Assets: Current assets: Cash 13 Accounts receivable 5 prepaid insurance 9 Store supplies 7 Total Current assets 34 Store Equipment 11 Less: Accumulated dep 5 6 Total Assets 40 Liabilities: Current liabilities: Accounts payable 13 Wages payable 8 Total Current liabilities 21 Owner's equity: J Tull Capital 19 Total Liabilities and Equity 40