Prepare an income statement for the month ended March 31, 2012. Prepare a classi
ID: 2374098 • Letter: P
Question
Prepare an income statement for the month ended March 31, 2012.
Prepare a classified balance sheet at March 31, 2012.
Info:
- Received contribution of $20,000 from each of the two principal owners of the new business in exchange for shares and stock.
-Signed a two year promissory note at the bank and received cash of $15,000. Interest, along with the 15,000, will be repaid after 2 years.
-Purchased $700 in miscellaneous supplies on account. The company has 30 days to pay for the supplies.
- Billed a client $4,000 for services rendered by Expert in helping to install a new computer system. The client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days.
- Received 25% of the amount billed to the client on March 19.
- Received cash of $2,800 for services provided in assisting a client in selecting software for its computer.
-Purchased a computer syster for $8,000 in cash
- Paid $3,300 of salaries and wages for march
-Received and paid $1,400 in in gas, electric, and water Bills
Companys Name is Consulting services INC
Explanation / Answer
income statement of consulting services INC as on march 31, 2012
Particulars amount($)
revenue from services
installing computer 4000
selecting software 2800 6800
- salaries and wages 3300
gross margin 3500
- operating expenses
gas, electricity, water bill 1400
net revenue 2100
balance sheet of consultancy services INC as on March 31, 2012
Assets amount($)
Cash 26100
supplies ( client) 3000
computer 8000
miscelleneous 700
Total Assets 37800
Liabilities amount($)
account payable 700
capital 20000
promissory notes 15000
net revenue 2100
Total liabilities 37800
workin notes for cash balance= opening capital+ promissory note+ recieved from client- puchase of computer- salaries and wages-electricity bill=20000+15000+ 25%*4000+2800-8000-3300-1400= $ 26100