Using your answer from Exercise 1-20, prepare an income statement, a statement of changes in equity, and

Question:

Using your answer from Exercise 1-20, prepare an income statement, a statement of changes in equity, and a balance sheet using the formats provided.

Mailin Moon-Freelance Writing Income Statement For Month Ended March 31, 2020 Revenues: Freelance writing revenue. Opera


Analysis Component: Identify which assets were financed by:

a. Liabilities

b. Owner investment

c. Profit

Also identify the amount(s) for each.


Exercise 1-20

Mailin Moon is a freelance writer who submits articles to various magazines and newspapers. She operates out of a small office where she employs one administrative assistant. The following activities occurred during March 2020, her first month of business:

a. Moon invested $2,500 worth of equipment into her business along with $3,000 cash.
b. Submitted a series of articles to The Globe and Mail and received $6,500 cash.
c. Purchased supplies on credit; $600.
d. Paid the part-time administrative assistant’s salary of $1,450.
e. Moon ordered $3,000 of office equipment from the IKEA catalogue. It is scheduled to arrive in April or May.
f. Paid the rent for the first month; $1,400.
g. Submitted an article to Report on Business; will receive $4,500 next month.

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Related Book For  answer-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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