Process

In this section you will discuss the process you used to generate accurate financial statement results for the business owner from the list of business transactions provided. Explain what is being communicated through each of the financial statements you prepared (income statement, statement of equity and balance sheet) and how this information will be used in business decision making and planning.

\begin{tabular}{|c|c|c|} \hline & A & B \\ \hline 1 & A Company & \\ \hline 2 & \multirow{2}{*}{\begin{tabular}{c} Income Statement \\ For Month ending 06/30/20XX \end{tabular}} & \\ \hline 3 & & \\ \hline 4 & & \\ \hline 5 & \multicolumn{2}{|l|}{ Revenues } \\ \hline 6 & Service Revenue & $5,525.00 \\ \hline \multicolumn{3}{|l|}{7} \\ \hline 8 & Total Revenues & s 5.525.00 \\ \hline \multicolumn{3}{|l|}{9} \\ \hline 10 & \multicolumn{2}{|l|}{ Operating Expenses: } \\ \hline 11 & Rent Expense & 1,195.00 \\ \hline 12 & Business License Expense & 250.00 \\ \hline 13 & Telehone Expense & 155.00 \\ \hline 14 & Repair and Maintenance Expense & 210.00 \\ \hline 15 & Advertising Expense & 250.00 \\ \hline 16 & Wage Expense & 650.00 \\ \hline 17 & Depreciation Expense & 250.00 \\ \hline \multicolumn{3}{|l|}{18} \\ \hline \multicolumn{3}{|l|}{19} \\ \hline 20 & \multirow[t]{2}{*}{ Total Operating Expenses: } & \multirow[t]{2}{*}{2.960 .00} \\ \hlinen1 & & \\ \hline & Trial Balance & ement - \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline & A & B & c & D & & E \\ \hline 1 & \multicolumn{6}{|c|}{ Company Name } \\ \hline 2 & \multicolumn{6}{|c|}{ Statement of Owner's Equity } \\ \hline 3 & \multicolumn{6}{|c|}{ Period Ending 06/30/20XX } \\ \hline 4 & \multicolumn{2}{|c|}{ Beginning Capital on 6/01/20XX } & & & & \\ \hline 5 & Increases to capital & & & & & \\ \hline 6 & & \multicolumn{2}{|c|}{ Net income/loss: } & & $ & 2,565.00 \\ \hline 7 & & \multicolumn{2}{|c|}{ Owner Contributions } & & $ & 50,000.00 \\ \hline 8 & & Subtotal: & & & $ & 52,565.00 \\ \hline 9 & & & & & & \\ \hline 10 & Decreases to capital & & & & & \\ \hline 11 & & & & & & \\ \hline 12 & & Owner Draws & & & $ & 1,000.00 \\ \hline 13 & & & & & & \\ \hline 14 & \multicolumn{2}{|c|}{ Ending Equity as of 06/30/20XX} & & & $ & 51,565.00 \\ \hline \end{tabular}