Question: A sole proprietorship was started on January 1, 2016, when it received $30,000 cash from Maria Lopez, the owner. During 2016, the company earned $50,000

A sole proprietorship was started on January 1, 2016, when it received $30,000 cash from Maria Lopez, the owner. During 2016, the company earned $50,000 in cash revenues and paid $22,300 in cash expenses. Lopez withdrew $10,000 cash from the business during 2016.

Required

Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Lopez’s 2016 fiscal year.

Step by Step Solution

★★★★★

3.45 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Transactions Cash Acquired from Owner 30000 Revenues 50000 Expenses 22300 Withdrawals 10000 Maria Lo... 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)

443-B-A-P (1191).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, Year 1, when it received $30,000 cash from Maria Lopez, the owner. During Year 1, 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, 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...

A sole proprietorship was started on January 1, 2016, when it received $77,500 cash from Marlin Jones, the owner. During 2016, the company earned $54,600 in cash revenues and paid $19,700 in cash...

A sole proprietorship was started on January 1, 2016, when it received $60,000 cash from Marlin Jones, the owner. During 2016, the company earned $35,300 in cash revenues and paid $16,200 in cash...

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...

Asole proprietorship was started on January 1, 2016, when it received $60,500 cash from Martin Jones, the owner. During 2016, the company earned $43,600 in cash revenues and paid $19,930 in cash...

On October 1, 2014, Healy Farm Equipment Corp. sold a harvesting machine to Homestead industries. Instead of a cash payment, Homestead Industries gave Healy Farm Equipment a $150,000, two-year, 10%...

The curvature at a point P of a curve is defined as Where Î¦ is the angle of inclination of the tangent line at P, as shown in the figure. Thus the curvature is the absolute value of the...

Which key characteristic ( s ) are at the enterprise level of a data - oriented culture? ( select all that apply ) . Group of answer choices Insights are widely available to those who need them...

Choose the correct word: 1. We usually _______ lunch at the school. has have did 2. The weather _______ beautiful today. is am will 3. Summer often _______ sandwiches for lunch. has will am 4. Tom...

Explain to me how to calculate average annual growth rate please? In 1960Q3, real GDP per capital was $17,223. In 2017Q3, real GDP was per capita $52,605. What was the average annual growth rate over...

2. Use the strangeness law to show that the following reactions are not allowed: a) n+p - 30 + KO + no b) 1 + n - p + p + 3n + + 3n c) p + P - p + n o + A0 + K -

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $155,000 $194,000 $215,000 Insurance expense (2)...

define emotional intelligence and explain why the best leaders have it;

Required For each of the following events, indicate whether the freight terms are FOB destination or FOB shipping point. a. Sold merchandise and the buyer paid the freight costs. b. Purchased...

Required For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a. In a period of falling prices, net income would be highest. b. In a period of falling...

Jones Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,060 and the other, $1,380. Jones sold one of...

Implied growth. An analyst is investigating the potential growth rates in residual income of companies in the technology sector. He collects the following data on Lesta Corp., a manufacturer of...

An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $12.6 million. Under Plan A, all the oil would be extracted in...

Question 14 5 pts You can choose to invest in one of the following 2 bonds: If you firmly expect market rates to decline from 2.5% to 2%, which bond should you best buy? Any of these One cannot say B...