Refer to the information in M1-7. Prepare a balance sheet at December 31, 2010. In Problem 7

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Refer to the information in M1-7. Prepare a balance sheet at December 31, 2010.

In Problem 7

The Tea Room, a sole proprietorship owned by Gerry Stayman, earned revenues of $220,000 and incurred expenses of $150,000 during its first year of operations ended December 31, 2010. At the end of the year, The Tea Room owned assets of $180,000 and owed liabilities of $30,000. Gerry invested $100,000 cash to establish the new business and withdrew $20,000 during the year. Prepare the Tea Room's income statement for 2010.

Balance Sheet
Balance 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...
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Principles Of Accounting

ISBN: 9780077300456

1st Edition

Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton

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