Charter Company

Balance Sheet
31-Dec-01

Assets Liabilities
Cash…......................................... $500,000 Accounts Payable $310,000
Supplies…................................... 200,000 Total liabilities 310,000
Equipment…............................... 160,000 Equity
C.Taylor, Capital 550,000
Total Assets $860,000 Total liabilities and equity 860,000
 Martin Marine
Balance Sheet
31-Dec-01

Assets Liabilities
Cash…......................................... $220,000 Accounts Payable $360,000
Supplies…................................... 140,000 Total liabilities 360,000
Equipment…............................... 300,000 Equity
C.Taylor, Capital 500,000
Total Assets $660,000 Total liabilities and equity 860,000
 Assets = Liabilities + Equity
Cash + Account + Supplies +Equipment =Accounts Notes Payable Onwer Owner +Revenues -Expenses
Receivable Payable Capital Withdrals
a $ 6,700 6,700
b. 5,200 5,200
c. -2,000 2,000 positive
d. 2,600 -2,600
e. -940 940

6,360 2,600 0 0 0 0 0 11,900 2,940

 Assets = Liabilities + Equity
=Accounts Onwer Owner
Cash + Supplies +Equipment Land Notes Payable +Revenues -Expenses
Payable Capital Withdrals
a $ 17,000 17,000
b. -1,000 1,000
c. 11,000 11,000
d. 300 300
e. -10,000 10,000

6,000 1,300 11,000 10,000 300 28,000 0 0 0

 NEROS
Income Statement
For Month Ended December 31, 2001

Revenues
Consulting Revenue ($25,000+$25,000)….............................................. $ 50,000
Rental Reveue…............................................................................. 10,000
Total Revenues…......................................................................................... $ 60,000

Expenses
Rent expense…........................................................................ 4,000
Adverstisment expense…........................................................ 3,000
Salaries expenses…..................................................................... 6,500
Insurance expense................................................................... 3,000
Utilities expense..................................................................... 3,500
Total expenses…...................................................................... 20,000

Net Income…......................................................................................... $ 40,000

 Neros
Statement of Owner's Equirty
For Month Ended December 31, 2001

C. Taylor. Capital , December 1, 2001…...................................................................... $0

Plus: Investment by owner…............................................................ $ -
Net Income…........................................................................... 40,000 $ 40,000
$ 40,000

Less: Whitdrawals by owner…............................................................................ 0

C. Taylor. Capital , December 31, 2001…................................................................... $ 40,000
 Neros
Balance Sheet
31-Dec-01

Assets Liabilities
Cash…......................................... $90,000 Accounts Payable $36,000
Supplies…................................... 5,000 Total liabilities 36,000
Equipment…............................... 15,000 Equity
Neros, Capital 74,000
Total Assets $110,000 Total liabilities and equity 110,000
 Neros
Balance Sheet
31-Dec-01

Assets Liabilities
Cash…......................................... $60,000 Accounts Payable $55,000
Supplies…................................... 10,000 Total liabilities 55,000
Equipment…............................... 35,000 Equity
Neros, Capital 50,000
Total Assets $105,000 Total liabilities and equity 105,000
 Company Asstes = Liabilities + Equity Total
a Neros 110,000 36,000 74,000 110,000
b Centar 95,000 10,000 85,000 95,000
c Xenmix 105,000 55,000 50,000 105,000
 Hawkin's
Income Statement
For Month Ended December 31, 2001

Revenues Cash $8,500

Consulting Revenue (17,700)…................................................ $ 17,700 Accounts Receivable 1,200
Rental Reveue…............................................................................. 0 Supplies 3,200
Total Revenues…......................................................................................... $ 17,700 Equipment 15,300
Accounts Payable 7,700
Expenses Hawkin, Capital, December 1 18,700
Rent expense…........................................................................ 3,200 Hawkin, Withdrawals 2,300
0 Services Revenue 17,700
Salaries expenses…..................................................................... 8,000 Wages Expense 8,000
0 Rent Expense 3,200
Utilities expense..................................................................... 2,400 Utilities Expense 2,400
Total expenses…...................................................................... 13,600

Net Income…......................................................................................... $ 4,100

 Hawkin's
Statement of Owner's Equirty
For Month Ended December 31, 2001

Hawkin's Capital , December 1, 2001…...................................................................... $18,700 Cash $8,500

Plus: Investment by owner…............................................................ $ - Accounts Receivable 1,200
Net Income…........................................................................... 4,100 $ 4,100 Supplies 3,200
$ 4,100 Equipment 15,300
Accounts Payable 7,700
Less: Whitdrawals by owner…............................................................................ 2,300 Hawkin, Capital, December 1 18,700
Hawkin's Capital , December 31, 2001…................................................................... $ 20,500 Hawkin, Withdrawals 2,300
Services Revenue 17,700
Wages Expense 8,000
Rent Expense 3,200
Utilities Expense 2,400
 Hawkin's
Balance Sheet
31-Dec-01

Assets Liabilities Cash $8,500

Cash…......................................... $8,500 Accounts Payable $7,700 Accounts Receivable 1,200
Supplies…................................... 3,200 Total liabilities 7,700 Supplies 3,200
Equipment…............................... 15,300 Equipment 15,300
Acounts Receivable…................. 1,200 Equity Accounts Payable 7,700
Hawkink's, Capital 20,500 Hawkin, Capital, December 1 18,700
Total Assets $28,200 Total liabilities and equity 28,200 Hawkin, Withdrawals 2,300
Services Revenue 17,700
Wages Expense 8,000
0 Rent Expense 3,200
Utilities Expense 2,400
 ERNST
Income Statement
For Month Ended December 31, 2001

Revenues Cash $9,750

Consulting Revenue (15,620)…................................................ $ 15,620 Accounts receivable 15,620
Rental Reveue…............................................................................. 0 Office supplies 3,710
Total Revenues…......................................................................................... $ 15,620 Land 45,970
Office equipment 18,450
Expenses Accounts payable 8,900
Rent expense…........................................................................ 4,070 Owner investments 84,470
Adverstisment expense…........................................................ 0
Salaries expenses…..................................................................... 7,450
Telephone expense................................................................... 810 Cash withdrawals by owner $2,530
Miscellaneous expense..................................................................... 630 Consulting revenue 15,620
Total expenses…...................................................................... 12,960 Rent expense 4,070
Salaries expense 7,450
Net Income…......................................................................................... $ 2,660 Telephone expense 810
Miscellaneous expenses 630
 Ernst
Statement of Owner's Equirty
For Month Ended December 31, 2001

Ernst Capital , December 1, 2001…...................................................................... $0 Cash $9,750

Plus: Investment by owner…............................................................ $ 84,470 Accounts receivable 15,620
Net Income…........................................................................... 2,660 $ 87,130 Office supplies 3,710
$ 87,130 Land 45,970
Office equipment 18,450
Less: Whitdrawals by owner…............................................................................ 2,530 Accounts payable 8,900
Ernst Capital , December 31, 2001…................................................................... $ 84,600 Owner investments 84,470

Cash withdrawals by owner $2,530

Consulting revenue 15,620
Rent expense 4,070
Salaries expense 7,450
Telephone expense 810
Miscellaneous expenses 630
 Ernst
Balance Sheet
31-Dec-01
Cash $9,750
Assets Liabilities Accounts receivable 15,620
Cash…......................................... $9,750 Accounts Payable $8,900 Office supplies 3,710
O. Supplies…................................... 3,710 Total liabilities 8,900 Land 45,970
Off. Equipment 18,450 Office equipment 18,450
Land…........................................ 45,970 Accounts payable 8,900
Acounts Receivable…................. 15,620 Equity Owner investments 84,470
Ernst, Capital 84,600
Total Assets $93,500 Total liabilities and equity 93,500
Cash withdrawals by owner $2,530
Consulting revenue 15,620
0 Rent expense 4,070
Salaries expense 7,450
Telephone expense 810
Miscellaneous expenses 630
 Ernst Cash Flow
Statement of Cash Flows
For Month Ended December 31, 2001

Cash flow from operating activities

Cash received fron clients ….................................................................................... $ -
Cash paid to employees…....................................................................................... (2,260)
Cash paid for rent…................................................................................................. (4,070)
Cash paid for telephone…....................................................................................... (810)
Cash paid for miscellaneour….................................................................................. (630)
Net cash provided by operating activities …............................................................ $ (7,770)

Cash flows from investing actitivites

Cash paid for equipment …..................................................................................... (18,450)
Net cash used by investing activities …................................................................... (18,450)

Cash flows from financing actities

Cash investments by owner …................................................................................ 38,500
Cash whithdrawls by onwer…................................................................................. (2,530)
Net cash provided by financing activities…............................................................. 35,970
Net increase in cash 9,750 Bsheet

Cash Balance, December 1, 2021…...................................................................................... 0

Cash Balance, December 31, 2021….................................................................................... 9,750

Also assume the following:

The owner’s initial investment consists of $38,500 cash and $45,970 in land. 84470
The company’s $18,450 equipment purchase is paid in cash.
Cash paid to employees is $2,260. The accounts payable balance of $8,900 consists of the $3,710 office supplies purchase and $5,190 in employee salaries yet to be paid.
The company’s rent expense, telephone expense, and miscellaneous expenses are paid in cash.
No cash has yet been collected on the $15,620 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated

Cash $9,750 Acount P 8900

Accounts receivable 15,620 Cash emplo 2260
Office supplies 3,710 office supp 3710 5190 to be paid
Land 45,970 2260
Office equipment 18,450 2930 3710
Accounts payable 8,900 5190
Owner investments 84,470 8900 6640
Cash withdrawals by ow $2,530 8900 7,450
Consulting revenue 15,620 -1,450
Rent expense 4,070
Salaries expense 7,450
Telephone expense 810
Miscellaneous expenses 630