Assets $=$ Liabilities $+$ Equity

Cash $+$ Accounts Receivable $+$ Office Supplies $+$ Office Equip. $+$ Electrical Equip. $=$ Accounts Payable $+$ Larry Power, Capital

$$32,000+$ $$7,200+$ $$2,100+$ $$30,000+$ $$15,000=$ $$20,000+$ $$66,300$

During November, the following occurred:

Nov. $1$ Rented office space and paid cash for the month$$s rent of $$7,400.$

$3$ Purchased electrical equipment for $$20,000$ from an electrician who was going out of business, by using $$11,000$ in personal funds and agreeing to pay the balance in $30$ days.

$5$ Purchased office supplies by paying $$2,000$ cash.

$6$ Completed electrical work and immediately collected $$2,200$ for doing the work.

$8$ Purchased $$5,400$ of office equipment on credit.

$15$ Completed electrical work on credit in the amount of $$6,200.$

$16$ Interviewed and hired a part$-$time electrician who will be paid $$5,500$ each month. He will begin work in three weeks.

$18$ Purchased $$1,200$ of office supplies on credit.

$20$ Paid for the office equipment purchased on November $8.$

$24$ Billed a client $$4,900$ for electrical work; the balance is due in $30$ days.

$28$ Received $$6,200$ for the work completed on November $15.$

$30$ Paid the office assistant$$s salary of $$4,600.$

$30$ Paid the monthly utility bills of $$3,800.$

$30$ Power withdrew $$1,600$ from the business for personal use.

The following table shows the effects of each November activity on the items in the equation.

Cash Accounts Receivable Office Supplies Office Equip. Electrical Equip. Accounts Payable Larry Power,Capital Explanation of Equity Transaction

Bal. Oct. $31$ $ $32,000$ $ $7,200$ $ $2,100$ $ $30,000$ $ $15,000$ $ $20,000$ $ $66,300$

Nov. $17,4007,400$ Rent expense

$3+11,000+11,000$ Investment by owner

$311,000+$$ $20,000+$$ $9,000$

$52,000+2,000$

$6+2,200+2,200$ Electrical fees earned

$8+5,400+5,400$

$15+6,200+6,200$ Electrical fees earned

$16$

$18+1,200+1,200$

$205,4005,400$

$24+4,900+4,900$ Electrical fees earned

$28+6,2006,200$

$304,6004,600$ Salaries expense

$303,8003,800$ Utilities expense

$301,6001,600$ Withdrawal by owner

$ $15,600$ $ $12,100$ $ $5,300$ $ $35,400$ $ $35,000$ $ $30,200$ $ $73,200$

$ $103,400=$ $ $103,400$

Required:

$1.$ Using the above information, prepare an income statement.

$2.$ Using the above information, prepare a statement of changes in equity.

$3.$ Using the above information, prepare a balance sheet.

Answer rating: 100% (QA)

1 Income Statement for Cobras Incorporated For the Month Ended November 30 2023 Revenu... View the full answer