The accountant for the firm owned by Zachary Morrow prepares financial statements at the end of each month.

INSTRUCTIONS

Use the figures in the T accounts for Problem 3.4B to prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet. (The first line of the statement headings should read “Zachary Morrow, Counselor and Attorney at Law.”) Assume that the transactions took place during the month ended April 30, 20X1. Determine the account balances before you start work on the financial statements.

Analyze: 

What net change in owner’s equity occurred during the month of April?

Data from Problem 3.4B

The accounts and transactions of Zachary Morrow, Counselor and Attorney at Law, are reflected below.

INSTRUCTIONS

Analyze the transactions. Record each transaction on the appropriate side of the T accounts. Identify each entry in the T accounts by writing the letter of the transaction next to the entry.

Analyze:

What outstanding amount is owed to the company from its credit customers?

Transcribed Image Text:

ASSETS Cash Accounts Receivable Furniture Equipment Automobile LIABILITIES Accounts Payable OWNER'S EQUITY Zachary Morrow, Capital Zachary Morrow, Drawing REVENUE Fees Income EXPENSES Automobile Expense Rent Expense Utilities Expense Salaries Expense Telephone Expense