Examine Exhibit 1-11 on page 20. The exhibit summarizes the transactions of Hunter Environmental Consulting for the month of April 2016. Suppose the business completed Transactions 1 to 7 and needed a bank loan on April 21, 2016. The vice-president of the bank requires financial statements to support all loan requests.
Exhibit 1-11

Required
Prepare the income statement, statement of owner's equity, and balance sheet that Hunter Environmental Consulting would present to the banker on April 21, 2016, after completing the first seven transactions.

Transcribed Image Text:

Type of Owner's Equity Transaction Assets Liabilities+Owner's Equity Accounts Lisa Hunter Accounts CashReeivable Supplies Land Owner investment (2) -100,000 +100,000 7,000100,000 Service revenue Service revenue Rent expense Utilities expense 25,000 7,000 100,000 Bal 68,000 25,000 7000 00,000 163,000 25,000000 Not a transaction of the business 100,000 Bal. (8) -15,000 10,000 7,000 100,000 6,000Owner withdrawal 10,000 7,000 100,000 289,000