The following account balances are for Carl Nicholson, Certified Public Accountant, as of April 30, 2016. Cash

Question:

The following account balances are for Carl Nicholson, Certified Public Accountant, as of April 30, 2016.

Cash ................$30,000

Accounts Receivable......... 12,000

Maintenance Expense......... 4,600

Advertising Expense .......... 3,890

Fees Earned ..............26,800

Carl Nicholson, Capital, April 1 ....... ?

Salaries Expense .............13,000

Machinery .............21,000

Accounts Payable ..........13,200

Carl Nicholson, Drawing ........ 6,800

INSTRUCTIONS

Using the accounting equation form, determine the balance for Carl Nicholson, Capital, April 1, 2016. Prepare an income statement for the month of April, a statement of owner’s equity, and a balance sheet as of April 30, 2016. List the expenses on the income statement in alphabetical order.

Analyze: What net change in owner’s equity occurred during the month of April?

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...