Instructions

$1.$ Prepare an income statement for the year ended August $31,20$ Y$5.$

Answer

Check Figure: Net income, $ $125,000$

$2.$ Prepare a statement of owner's equity for the year ended August $31,20$Y$5.$ During the year, Effie Jackson invested an additional $ $25,000$ in the business.

$3.$ Prepare a balance sheet as of August $31,20$ Y $5.$

$4.$ Based upon the end$-$of$-$period spreadsheet, journalize the closing entries.

$5.$ Prepare a post$-$closing trial balance.

Hint: On your Statement of Equity, record the $\backslash (\backslash$$ $25,000\backslash )$ mentioned in Req $2.$ as an Owner's Investment. Beginning Capital on the Statement of Equity would be $($$$212,100-25,000)$