You are given the following data for the proprietorship of R. Black.
Black Proprietorship
Trial Balance
December 31, 2016

Black contributed $5,000 capital during the year.
Required:
1. Prepare an income statement for the year.
2. Prepare a statement of proprietor's capital for the year in the following format:
R. Black Proprietorship
Statement of Proprietor's Capital
For the Year Ended December 31, 2016
Balance at Jan. 1, 2016$
Contributions
Net income
Withdrawals_________
Balance at Dec. 31, 2016 $________
3. Prepare a balance sheet at December 31, 2016.
4. Prepare closing entries at year-end.

Transcribed Image Text:

Debit 10,000 20,000 30,000 Credit Cash Accounts receivable Merchandize inventory Accounts payable R. Black, capital R. Black, withdrawals Sales Cost of goods sold Rent expense Income taxes expense S 25.000 5,000 7,000 166,000 100,000 24,000 5,000 Totals $196,000 $196,000