The ledger of Lazdowski Marketing Services has the following account balances at the company’s year end, October 31, 2024:

Instructions

a. Prepare a trial balance, with the accounts arranged in ledger (financial statement) order, as illustrated in the chapter, and determine the missing amount for service revenue.

b. Prepare an income statement, statement of owner’s equity, and balance sheet.

Taking It Further

The owner, Inga Lazdowski, is not sure how much cash she can withdraw from the company each year. After reviewing the financial statements, comment on the amount she withdrew this year.

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Accounts payable Accounts receivable Advertising expense Cash Equipment Furniture I. Lazdowski, capital I. Lazdowski, drawings Insurance expense $ 4,403 6,010 14,970 4,930 25,970 56,685 57,410 75,775 2,020 Interest expense Notes payable Prepaid rent Rent expense Salaries expense Service revenue Supplies Supplies expense Unearned revenue $ 2,445 48,850 975 11,700 20,545 ? 1,240 5,000 3,555