Please answer the following questions after complete the exercise.

How much net income or loss was generated during the period?

For this business why do you think wages was the largest expense?

What was the increase or decrease in capital during the period?

Did the owner take any cash out of the business?

Did the business have a good or bad year? explain why.

What can the owner do to increase revenues ? profit?

Will the business be able to pay its current liabilities with existing current assets? explain why

If the owner purchases more office equipment, what will be the effect on the income statement? Be specific.

If someone suggested the business should buy $8,000 of office equipment to be more efficient would you agree or disagree? what would the owner have to do to make such a purchase?

A work sheet for Juanitas Consulting is shown below. There were no additional investments made by the owner during the month.

Juanitas Consulting

Worksheet

For Month Ended June 30, 20--

1		TRIAL BALANCE	TRIAL BALANCE	ADJUSTMENTS	ADJUSTMENTS	ADJUSTED TRIAL BALANCE	ADJUSTED TRIAL BALANCE	INCOME STATEMENT	INCOME STATEMENT	BALANCE SHEET	BALANCE SHEET
2	ACCOUNT TITLE	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
3	Cash	5,285.00				5,285.00				5,285.00
4	Accounts Receivable	1,075.00				1,075.00				1,075.00
5	Supplies	750.00			(a) 250.00	500.00				500.00
6	Prepaid Insurance	500.00			(b) 100.00	400.00				400.00
7	Office Equipment	2,200.00				2,200.00				2,200.00
8	Accumulated Depreciation-Office Equipment				(d) 110.00		110.00				110.00
9	Accounts Payable		1,500.00				1,500.00				1,500.00
10	Wages Payable				(c) 200.00		200.00				200.00
11	Juanita Alvarez, Capital		7,000.00				7,000.00				7,000.00
12	Juanita Alvarez, Drawing	800.00				800.00				800.00
13	Consulting Fees		4,204.00				4,204.00		4,204.00
14	Wages Expense	1,400.00		(c) 200.00		1,600.00		1,600.00
15	Advertising Expense	60.00				60.00		60.00
16	Rent Expense	500.00				500.00		500.00
17	Supplies Expense			(a) 250.00		250.00		250.00
18	Phone Expense	46.00				46.00		46.00
19	Electricity Expense	39.00				39.00		39.00
20	Insurance Expense			(b) 100.00		100.00		100.00
21	Gas and Oil Expense	28.00				28.00		28.00
22	Depreciation ExpenseOffice Equipment			(d) 110.00		110.00		110.00
23	Miscellaneous Expense	21.00				21.00		21.00
24		$12,704.00	$12,704.00	$660.00	$660.00	$13,014.00	13,014.00	2,754.00	4,204.00	10,260.00	8,810.00
25	Net Income							1,450.00			1,450.00
26								$4,204.00	$4,204.00	$10,260.00	$10,260.00