Below are extracted information for XYZ Limited for its first$-$year account ending $31$ December $2021$:

Equipment $($NCA$)20,000$ Utilities Expense $2,100$

Cash $5,000$ Accounts Receivable $2,500$

Service Revenue $40,000$ Salaries and Wages Expense $6,000$

Rent Expense $12,000$ Notes Payable $1,000$

Accounts Payable $3,500$ Owner$$s Drawings $4,000$

Prepayment $1,200$ Accruals $1,500$

Inventory $4,000$ Long term liabilities $6,000$

Office supplies $2,000$ Depreciation $5,000$

Investment $20,000$

a$.$ Prepare net income$/$profit$.$

b$.$ Prepare owner$$s equity statement.

c$.$ Prepare a balance sheet showing total assets, liabilities and owner$$s equity.

Answer rating: 100% (QA)

a To calculate net incomeprofit we need to subtract the expenses from the revenue Revenue Service Re... View the full answer