Question: A sole proprietorship was started on January 1, 2012, when it received $60,000 cash from Mark Pruitt, the owner. During 2012, the company earned $40,000

A sole proprietorship was started on January 1, 2012, when it received $60,000 cash from Mark Pruitt, the owner. During 2012, the company earned $40,000 in cash revenues and paid $19,300 in cash expenses. Pruitt withdrew $5,000 cash from the business during 2012.

Required

Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Pruitt’s 2012 fiscal year.

Step by Step Solution

★★★★★

3.36 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

T ransactions Cash Acquired from Owner 60000 Revenues 40000 Expenses 19300 Withdrawals 5000 Mark Pru... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

118-B-A-P (544).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A sole proprietorship was started on January 1, 2013, when it received $30,000 cash from Alex Ard, the owner. During 2013, the company earned $50,000 in cash revenues and paid $22,300 in cash...

A sole proprietorship was started on January 1, 2013, when it received $40,000 cash from Jimmy Ross, the owner. During 2013, the company earned $28,300 in cash revenues and paid $14,100 in cash...

A sole proprietorship was started on January 1, 2014, when it received $30,000 cash from Alex Ard, the owner. During 2014, the company earned $50,000 in cash revenues and paid $22,300 in cash...

1. 2. Use the following information to prepare a classified balance sheet for Alpha Co. at the end of Year 1. 99 Accounts receivable Accounts payable Cash Common stock Land Long-term notes payable...

A sole proprietorship was started on January 1, 2018, when it received $68,500 cash from Marlin Jones, the owner. During 2018, the company earned $39,800 in cash revenues and paid $18,990 in cash...

A sole proprietorship was started on January 1, 2018, when it received $60,000 cash from Marlin Jones, the owner. During 2018, the company earned $35,300 in cash revenues and paid $16,200 in cash...

Effect of accounting events on the financial statements of a sole proprietorshin A sole proprietorship was started on January 1, 2011, when it received S60.000 cash from Mark Pruitt, the owner....

A sole proprietorship was started on January 1, 2011, when it received $\$ 60,000$ cash from Mark Pruitt, the owner. During 2011, the company earned $\$ 40,000$ in cash revenues and paid \(\$...

A sole proprietorship was started on January 1, 2005, when it received $$60,000$ cash from Mark Pruitt, the owner. During 2005, the company earned $$40,000$ in cash revenues and paid $$19,300$...

A sole proprietorship was started on January 1, 2016, when it received $47,500 cash from Marlin Jones, the owner. During 2016, the company earned $40,900 in cash revenues and paid $21,070 in cash...

If r(t) = (2et, 2e-3t, 3tet), find T(0), r"(0), and r'(t) r"(t). T(0) = r"(0) = r'(t) r"(t) =

The boom AC is a 4-in. square steel tube with a wall thickness of 0.25 in. The boom is supported by the 0.5-in.-diameter pin at A, and the 0.375-in.-diameter cable BC. The working stresses are 25 ksi...

May Readiness Plan What responsibilities do I currently manage well? What areas do I need to improve in? What are 3 concrete actions I can take to be more prepared for adult life

The annual net income of the Todd Bros. partnership is distributed so that Ken receives $15,000 more than 80% of Hughs share. How should a net income of $98,430 be divided between the partners?

Edna incurs various legal fees in obtaining a divorce. Which types of expenses associated with the divorce are deductible by Edna, and which are not?

Hank was transferred from Arizona to North Dakota on March 1 of the current year. He immediately put his home in Phoenix up for rent. The home was rented May 1 to November 30 and was vacant during...

An assignable loan contract executed 3 months ago requires two payments of $3200 plus interest at 9% from the date of the contract, to be paid 4 and 8 months after the contract date. The payee is...

Linda operates an illegal gambling operation and incurs the following expenses. Which of these expenses can reduce her taxable income? a. Bribes paid to city employees. b. Salaries to employees. c....

14.45 Tech Tool: Database Software Software Video: Database Tables, Database Relationships Kolbe & Co. has asked for your assistance in building a MS Access database from an ERD. 1. Download the data...

Apple, Inc., designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPodTM) along with related accessories and services,...

List the errors you find in the following partial balancesheet: HOBART COMPANY Balance Sheet December 31, 2010 Assets $ 350,000 Total current assets Replacement Accumulated Book Depreciation Cost...

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Finder's fee...

ABC Corp. is insured under a CGL with the following limits: General Aggregate $2,000,000. Products/ Completed Operations Aggregate $2,000,000. Personal & Advertising Injury Limit $1,000,000. Each...

STATS 134-B READ COMMENTS FOR INSTRUCTIONS! PLEASE SKIP IF YOU CANT FINISH! I WILL REPORT THOSE WHO WILL FLAG THIS. THANKS NEED URGENT! 6. When attributes charts are used when _______ a) Destructive...

3.17 Insurance company losses of a particular type are to reasonable approximation normally distributed with a mean of $150 million and standard deviation of $50 million. (Assume no different between...