John Clay organized Clay Company as a sole proprietorship on January 1, 2010. At the end of
Question:
John Clay organized Clay Company as a sole proprietorship on January 1, 2010. At the end of January
2010, the following monthly financial data are available:
Service Revenue ........................................................................... $130,000
Other Expenses ............................................................................... 80,000
Wages Expense ............................................................................... 15,000
Cash ................................................................................................... 30,000
Accounts Receivable from Customers ............................................................ 15,000
Supplies ........................................................................................ 42,000
Accounts Payable (to suppliers for merchandise purchased during the month) ...... 26,000
J. Clay, Capital ................................................................................ 26,000
John Clay made no withdrawals during January.
Required:
1. Using formats from the chapter, prepare an income statement, statement of owner's equity, and balance sheet for the month of January, including appropriate headings.
2. Discuss whether Clay Company will be able to pay its liabilities.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Clay Company Income statement For the month ended Jan 2010 Service revenue 130000 Other Expenses 8...View the full answer
Principles Of Accounting
ISBN: 9780077300456
1st Edition
Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton
