Balance sheet Income Statement Statement of Cash Flows

Transaction Total assets Total Liab.

1 Owner invests cash in business +
2 Incurs legal costs on credit + +
3 Pays cash for employee wages -
4 Borrows cash by signing long-term note payable + +
5 Receives cash for services provided +
6 Buys land by signing note payable + +
7 Buuys office equipment for cash
8 Provides services on credit +
9 Collects cash on receivable from (8)
10 Owner withdraws cash -
Total Equity Net Income Operating Activities Financing Activities Investing Activities
+ +
-
- - -
+
+ + +

-
+ +
+
- -
1/
a. What is the amount of equity on December 31, 2010?
We have: Assets=Liabilities + Equity.
45,000=23,500 + Equity
Equity= 45,000 - 23,500 = 21,500
b. What is the amount of equity on December 31, 2011?
We have: Equity= Old Equity + Owner investment - Owner withdrawals + Net Income
Equity= 21,500 + 5,000 - 2,500 + 7,500
Equity= 31,500
c. What is the amount of liabilities on December 31, 2011?
We have: Assets=Liabilities + Equity.
Liabilities= Assets = Equity
Liabilities= 48,000 - 31,500
Liabilities= 16,500

2/
a. What is the amount of equity on December 31, 2010?
We have: Assets=Liabilities + Equity
35,000=22,500 + Equity
Equity=35,000 - 22,500 = 12500
b. What is the amount of equity on December 31, 2011?
We have: Assets=Liabilities + Equity
41,000=27,500 + Equity
Equity=41,000 - 27,500 = 13,500
c. What is net income for year 2011?
We have: Equity= Old Equity + Owner Investment - Owner withdrawals + Net Income
13,500= 12,500 + 1,500 -3,000 + Net income
Net income= 13,500 - 12,500 -1,500 +3,000
Net income= 2,500

3/ Firstly, calculate the amount of equity on December 31, 2010, company C:

We have: Assets=Liabilities + Equity
29,000=14,000 + Equity
Equity= 15,000
Now find the amount of equity on December 31, 2011:
We have: Equity= Old Equity + Owner Investment - Owner withdrawals + Net Income
Equity= 15,000 + 7,750 - 3,875 + 9,000 = 27,875
In conclusion, the amount of assets on December 31, 2011 is:
Assets=Liabilities + Equity
Assets=19,000 + 27,875 = 46,875

4/ Firstly, calculate the amount of equity on December 31, 2010, company D:

We have: Assets=Liabilities + Equity
80,000=38,000 + Equity
Equity= 42,000
Now find the amount of owner investment( capital) during year 2011:
We have: Equity= Old Equity + Owner Investment - Owner withdrawals + Net Income
Assets - Liabilities=Old Equity + Owner Investment - Owner withdrawals + Net Income
 125,000 - 64,000=42,000 + Owner investment - 0 + 12,000
Owner Investment= 7,000
5/ Firstly, calculate the amount of equity on December 31, 2011, company E:
We have: Assets=Liabilities + Equity
112,500=75,000 + Equity
Equity= 37,000
Now find the amount of equity on December 31, 2010:
We have: Equity= Old Equity + Owner Investment - Owner withdrawals + Net Income
37,000=Old Equity + 4,500 - 9,000 + 18,000
Old Equity= 23,500
Calculate the amount of liabilities on December 31, 2010, we have:
Assets=Liabilities + Equity
123,000=Liabilities + 23,500
Liabilities= 99,500
 Balance sheet
Affiliated Company
Balance sheet
31-Dec
Assets
Total Assets 90,000

Liabilities
Total Liabilities 34,000

Equity
Shareholder's Equity 56,000
Total Liabilities and Equity 90,000
 Income statement
Sun Energy Company
Income statement
31-Dec
Revenue
Total revenue 65,000
Expenses
Total expenses 50,000

Net income 15,000

Statement of Owner's Equity
THE GRAHAM CO.
Statement of Owner's Equity
For the Month Ended May 31

B. Walk, Capital, Dec. 31, 2010 8,000

Add:
Net income 9,000

Less:
Withdrawals by Owner 2,000
B. Walk, Capital, Dec. 31, 2011 15,000
 ASSETS
+ Account
May Cash + Supplies + Equipment Building =
receivable
a 60,000 30,000
b (50,000) 300,000
c (6,000) 6,000
d 4,000 1,000
e (1,000)
f 4,000
g 8,000
h (1,800)
i 3,000 (3,000)
j (500)
k (2,500)
Total 9,200 1,000 4,000 37,000 300,000 =

Net Income= 2,900

 LIABILITIES + EQUITY
Account
Note payable + Capital - Withdrawal + Revenue - Expenses
payable
60,000
250,000

5,000
(1,000)
2,400
4,000
(1,800)

(500)
(2,500)
4,500 250,000 60,000 (1,800) 6,400 (3,500)
 ASSETS LIABILIT + EQUITY
May Cashreceivable+ SuppliesEquipment = t payable + Capital ithdrawal+ Revenue
1 60,000 60,000
1 (3,200)
3 1,680 1,680
5 (800)
8 4,600 4,600
12 3,000 3,000
15 (850)
20 3,000 (3,000)
22 2,800 2,800
25 2,800 (2,800)
26 (1,680) (1,680)
27 60
28 (850)
30 (200)
30 (480)
31 (1,200) (2,000)
Total 61,140 - - 1,680 = 60 60,000 (2,000) 10,400

Income Statement
THE SIMPSON CO.
Income Statement
For the Month Ended May 31

Revenue
Consulting service revenue 10,400
Expenses
Rent expense 3,200
Cleaning expense 800
Salary expense 1,700
Advertising expense 60
Telephone expense 200
Utilities expense 480
Total expenses 6,440
Net income 3,960

Statement of Owner's Equity

THE SIMPSON CO.
Statement of Owner's Equity
For the Month Ended May 31

C. Hamilton, Capital, May 1 -

Add:
Investment by Owner 60,000
Net income 3,960
Less:
Withdrawals by Owner 2,000
C. Hamilton, Capital, May 31 61,960

Balance sheet
THE SIMPSON CO.
Balance Sheet
May 31

Assets
Cash 61,140
Equipment 1,680
Total assets 62,820

Liabilities
Account payable 60

Owner's Equity
Capital 61,960
Total liabilites and equity 62,820

Statement of cash flow

THE SIMPSON CO.
Statement of Cash Flows
For Month Ended May 31

Cash flows from operating activities:

Cash received from customers 10,400
Cash paid for rent (3,200)
Cash paid to employees (1,700)
Cash paid for cleaning (800)
Cash paid for telephone (200)
Cash paid for utilities (480)
Net cash provided by operating activities 4,020
Cash flows from investing activities:
Purchase of equipment (1,680)
Net cash provided by investing activities (1,680)
Cash flows from financing activities:
Investment by owner 60,000
Withdrawals by owner (2,000)
Net cash provided by financing activities 58,000
Net increase in cash 60,340
Cash balance, May 1 -
Cash balance, May 31 60,340
QUITY
- Expenses

(3,200)

(800)

(850)

(60)
(850)
(200)
(480)

(6,440)
 Balance sheet
RWB Company
Balance sheet
31-Dec
Assets
Total Assets 114,000

Liabilities
Total Liabilities 74,000

Equity
Shareholder's Equity 40,000
Total Liabilities and E 114,000
 Income statement
Online Company
Income statement
31-Dec
Revenue
Total revenue 58,000
Expenses
Total expenses 30,000

Net income 28,000

Statement of Owner's Equity
THE COMEX
Statement of Owner's Equity
For the year ended December 31, 2011

C. Tex, Capital, Dec. 31, 2011 47,000

Add:
Net income 6,000

Less:
Withdrawals by Owner 8,000
C. Tex, Capital, Dec. 31, 2010 49,000
 Statement of Cash Flow
BuyRight Co.
for the year ended December 31, 2011
Cash from operating activities -4,000
Cash from investing activities 2,600
Cash from financing activities 2,800
Net increase in cash 1,400
Cash, December 31, 2010 1,300
 ASSETS LIABILITIES
+
+
Account + Account Note
Cash Equipme Building =
receivabl Supplies payable payable
nt
e
a 95,000 20,000
b (20,000) 120,000 100,000
c (20,000) 20,000
d 1,400 3,000 4,400
e (400)
f 1,800
g 2,000
h (5,000)
i 1,800 (1,800)
j (2,000) (2,000)
k (2,000)
Total 49,400 - 1,400 43,000 120,000 = 2,400 100,000
Net incom 1,400
 + EQUITY

-
+ -
+ Capital Withdra
Revenue Expenses
wal

115,000

(400)
1,800
2,000
(1,800)

(2,000)
115,000 (1,800) 3,800 (2,400)