Below are the financial accounts of Special Assets. The company has just completed its 10th year of
Question:
Below are the financial accounts of Special Assets. The company has just completed its 10th year of operations ended December 31, 2011.
Accounts Payable .......... $ 3,600
Accounts Receivable ........ 4,500
Cash ............... 71,700
Commission Sales Revenue .....400,000
Commission Expense .........225,000
Commission Payable ........ 22,700
Equipment ............$59,900
Marketing Expense .......... 20,100
Office Rent Expense ......... 36,000
Owner’s Capital, December 31, 2010 ... 64,300
Supplies ............. 700
Supplies Expense .......... 2,600
Telephone and Computer Expenses ... 5,100
Wages Expense ........... 32,000
Withdrawals ............. 33,000
Required
1. Prepare the income statement, statement of owner’s equity, and balance sheet for Special Assets. There were no investments by the owner during the year.
2. The owner is considering expansion. What other statement would be useful to the owner in assessing whether the company’s operations are generating sufficient funds to support the expenses? Why would it be useful?
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...
Step by Step Answer:
1Financial statements prepared Special Assets Income Statement For the Year Ended December 31 2011 R...View the full answer
