Cash
Accounts Receivable
Supplies
Office Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Raul Hann, Capital
Raul Hann, Drawing
Fees Earned
Salary Expense
Supplies Expense
Depreciation Expense
Miscellaneous Expense
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Olympia Consulting
End-of-Period Spreadsheet
For the Year Ended April 30, 2014
Unadjusted
Trial Balance T Adjustments rial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Adjusted
27,500
53,500
3,000
30,500
2,000
32,000
1,500
150,000
4,500
3,300
82,200
60,000
150,000
(c) 450
(a) 1,800
(b) 750
3,000
(a) 1,800
(b) 750
(c) 450
3,000
27,500
53,500
1,200
30,500
2,000
32,450
1,800
750
1,500
151,200
5,250
3,300
450
82,200
60,000
151,200
A
Based on the preceding spreadsheet, prepare an income statement, statement of owner’s equity, and balance sheet for Olympia Consulting
Answer:
OLYMPIA CONSULTING
Income Statement
For the Year Ended April 30, 2014
Fees earned $60,000
Expenses:
Salary expense $32,450
Supplies expense 1,800
Depreciation expense 750
Miscellaneous expense 1,500
Total expenses 36,500
Net income $23,500
OLYMPIA CONSULTING
Statement of Owner’s Equity
For the Year Ended April 30, 2014
Raul Hann, capital, May 1, 2013 $ 82,200
Net income $23,500
Less withdrawals 2,000
Increase in owner’s equity 21,500
Raul Hann, capital, April 30, 2014 $103,700
OLYMPIA CONSULTING
Balance Sheet
April 30, 2014
Assets Liabilities
Current assets: Current liabilities:
Cash $27,500 Accounts payable $3,300
Accounts receivable 53,500 Salaries payable 450
Supplies 1,200 Total liabilities $ 3,750
Total current assets $ 82,200
Property, plant, and
equipment:
Office equipment $30,500
Less accum. depr. 5,250 Owner’s Equity
Total property, plant, Raul Hann, capital 103,700
and equipment 25,250 Total liabilities and
Total assets $107,450 owner’s equity $107,450