Using your answer from Exercise 1-21, prepare an income statement, statement of changes in equity, and balance

Question:

Using your answer from Exercise 1-21, prepare an income statement, statement of changes in equity, and for March 2014.
In exercise 1-21

a. Pete Kequahtooway invested $4,300 cash and $15,000 of equipment into his business.
b. Purchased various supplies on account; $1,600.
c. Bought supplies on credit; $950.
d. Pete signed a $4,000 contract to do yard work beginning in May.
e. Did work for a client on account; $550.
f. Performed services for a customer on credit; $600.
g. Paid $200 for the supplies purchased in (c).
h. aid $250 for advertising in the local newspaper.
i. Collected the amount owed from the customer in (f).
Using the format provided below, show the effects of the activities listed in (a) through (i). For each transaction that affects equity, include a brief description beside it (owner investment, owner withdrawal, revenue, expense).
Analysis Component: Review Pete's income statement. Does the net income of $900 represent $900 of cash? Explain.

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...