Prepare the four financial statements using the Tabular analysis John Edwards op
ID: 2402834 • Letter: P
Question
Prepare the four financial statements using the Tabular analysis
John Edwards open his own Dental practice business on Jan 1, 2015. During the first month of operations, the following transactions occurred:
1. John invested $31,000 in cash in the business
2. Paid $1000 for January rent
3. Purchased equipment on account for $3000
4. Performed dental services for clients for cash $8000
5. Borrowed $1000 cash from a bank on a note payable
6. Performed dental services for clients on account $2000
7. Paid salaries $1000
8. Paid utilities $300
9. Paid $100 for advertising with local newspaper
10. John withdrew $1,500 for personal use
Instructions:
1) Prepare a tabular summary of the transactions
2) Prepare the income statement, owner’s equity, and balance sheet at January 30,2015
Explanation / Answer
1
2) Prepare the income statement, owner’s equity, and balance sheet at January 30,2015
Asset = Liabilities Transaction Cash AccountReceivable Equipment Account Payable Note Payable Owners Equity 1 31000 31000 2 -1000 -1000 3 3000 3000 4 8000 8000 5 1000 1000 6 2000 2000 7 -1000 -1000 8 -300 -300 9 -100 -100 10 -1500 -1500 Total 36100 2000 3000 3000 1000 37100