The following data is provided to you for the R. Black property. Property of R. Black Trial
Question:
The following data is provided to you for the R. Black property.
Property of R. Black
Trial balance as of December 31, 2019
credit debit
Cash $10,000
Accounts receivable 20,000
Merchandise inventory 30,000
Accounts payable $25,000
R. Negro, capital 5.000
R. Negro, withdrawals 7,000
Sales 166,000
Cost of goods sold 100,000
Rental expenses 24,000
Income tax expenses 5,000
Totals $196,000 $196,000
Black contributed $5,000 of capital during the year.
Required:
1. Prepare an income statement for the year.
2. Prepare an owner's equity statement for the year in the following format:
Property of R. Black
Owner's Equity Statement
For the year ended December 31, 2019
Balance as of January 1, 2019 $
contributions
Net Income
withdrawals
Balance as of December 31, 2019 $
3.Prepare a balance sheet as of December 31, 2019.
4. Prepare closing entries at the end of the year.
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura