On May 1, Steven Rumford started Skyline Flying School, a company that provides flying lessons, by investing

Question:

On May 1, Steven Rumford started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2022, and the revenues and expenses for the month of May Steven Rumford made no additional investment in May, but he withdrew $1,700 in cash for personal use.


Instructions
a. Prepare an income statement and owner’s equity statement for the month of May and a balance sheet at May 31.
b. Prepare an income statement and owner’s equity statement for May assuming that the data above need to be adjusted for the following items: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $3,300 of gasoline expense was incurred but not paid.

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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Tools For Business Decision Making

ISBN: 9781119571056

7th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

Question Posted: