On Feb. 1, 2020, Eissa Amiri started ACE Insulating Company. Following were the account balances of ACE Insulating Company on Feb. 28, 2020.

(All amounts are in AED)

Cash	12,300
Accounts receivable	38,000
Insulating supplies	18,200
Prepaid rent	2,500
Automobile	80,000
Accounts payable	2,000
Notes payable (due in 3 months)	7,000
Jessa, capital	130,800
Jessa, withdrawals	5,000
Insulating revenues	27,000
Salaries expense	5,000
Utilities expense	2,000
Transportation expense	800
Rent expense	3,000

Required:

1. Prepare an Income Statement
2. Prepare the statement of changes in Owner’s equity
3. Prepare a Balance sheet.

Income Statement

Consulting fees earned
Salaries expense
Utilities expense
Transportation expense
Insurance expense
Rent expense
Net Operating Income

Owner’s equity Statement

Jessa, capital
Jessa, withdrawals
Net operating Income
Owners Equity

Balance Sheet

As on 28-2-2011

Current Asset:
Cash
Accounts receivable
Office supplies
Prepaid rent
Prepaid insurance
Total Current Asset
Fixed Asset: Furniture
Equipment
Total Fixed Asset
Total Asset
Short Term liabilities
Account payable
Notes payable (due in 3 months)
Interest payable
Long term liabilities: Long-term notes payable
Total Liability
+ Owner equity

Answer rating: 100% (QA)

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