Date Accounts Debit Credit

Jan 1 Furniture x 70,000

Computers x 42,000
Cash x 28,000
Common stock x 140,000
Jan 5 Rent Expense x 12,000
Cash x 12,000
Feb 1 Cash x 30,000
HSBC loan x 30,000
March 2 Supplies x 13,000
AP x 13,000
April 25 AR x 90,000
Service Revenue x 90,000
May 8 Utilities Expense x 3,000
AP x 3,000
June 21 Salaries Expense x 22,000
Cash x 22,000
 Date Accounts Debit Credit
July 14 Cash x 45,000
AR x 45,000
August 25 AP x 3,000
Cash x 3,000
Sept. 9 AP x 5,000
Cash x 5,000
Oct. 1 HSBC Loan x 10,000
Cash x 10,000
Oct. 1 Interest Expense x 4,500
Cash x 4,500
Nov. 11 Supplies Expense x 8,000
Supplies x 8,000
Dec 31 Depreciation Expense of Furniture x 7,000
Accumulated Depreciation of Furniture x 7,000
Dec 31 Depreciation Expense of Computers x 10,500
Accumulated Depreciation of Computers x 10,500
 Date Accounts Debit Credit
Dec 31 Dividends x 6,500
Cash x 6,500
 Cash
Date Details Debit Credit Debit Credit
Jan 1 To Common Stock 28,000 28,000
Jan 5 By Rent Expense 12,000 16,000
Feb 1 To HSBC loan 30,000 46,000
June 21 By Salaries Expense 22,000 24,000
July 14 To AR 45,000 69,000
August 25 By AP 3,000 66,000
Sept 9 By AP 5,000 61,000
Oct 1 By HSBC Loan 10,000 51,000
Oct 1 By Interest Expense 4,500 46,500
Dec 31 By Dividends 6,500 40,000
 Computers
Date Details Debit Credit Debit Credit
Jan 1 To Common Stock 42,000 42,000

Furniture
Date Details Debit Credit Debit Credit
Jan 1 To Common Stock 70,000 70,000

Common Stock
Date Details Debit Credit Debit Credit
Jan 1 By Furniture, 140,000 140,000
Computers & Cash

Rent Expense
Date Details Debit Credit Debit Credit
Jan 5 To Cash 12,000 12,000
 HSBC loan
Date Details Debit Credit Debit Credit
Feb 1 By Cash 30,000 30,000
Oct 1 To Cash 10,000 20,000

Supplies
Date Details Debit Credit Debit Credit
March 2 To AP 13,000 13,000
Nov 11 By Supplies Expense 8,000 5,000

Accounts Payable
Date Details Debit Credit Debit Credit
March 2 By Supplies 13,000 13,000
May 8 By Utilities Expense 3,000 16,000
August 25 To Cash 3,000 13,000
Sept 9 To Cash 5,000 8,000

Accounts Receivable
Date Details Debit Credit Debit Credit
April 25 To Service Revenue 90,000 90,000
July 14 By Cash 45,000 45,000
 Service Revenue
Date Details Debit Credit Debit Credit
April 25 By AR 90,000 90,000

Utilities Expense
Date Details Debit Credit Debit Credit
May 8 To AP 3,000 3,000

Salaries Expense
Date Details Debit Credit Debit Credit
June 21 To Cash 22,000 22,000

Interest Expense
Date Details Debit Credit Debit Credit
Oct 1 To Cash 4,500 4,500
 Supplies Expense
Date Details Debit Credit Debit Credit
Nov 11 To Supplies 8,000 8,000

Depreciation Expense of Furniture

Date Details Debit Credit Debit Credit
Dec 31 To Acc. Dep. Of Furn. 7,000 7,000

Accumulated Depreciation of Furniture

Date Details Debit Credit Debit Credit
Dec 31 By Dep. Exp. Of Furn. 7,000 7,000

Depreciation Expense of Computers

Date Details Debit Credit Debit Credit
Dec 31 To Acc. Dep. Of 10,500 10,500
Computers
 Accumulated Depreciation of Computers
Date Details Debit Credit Debit Credit
Dec 31 By Dep. Exp. of 10,500 10,500
Computers

Dividends
Date Details Debit Credit Debit Credit
Dec 31 To Cash 6,500 6,500

Date Details Debit Credit Debit Credit

Date Details Debit Credit Debit Credit

Date Details Debit Credit Debit Credit

Date Details Debit Credit Debit Credit

Date Details Debit Credit Debit Credit

Date Details Debit Credit Debit Credit

 Accounts Debit balances Credit balances
Cash Trial Balance
40,000
Computers 42,000
Furniture 70,000
Common Stock 140,000
Rent Expense 12,000
HSBC loan 20,000
Supplies 5,000
Accounts Payable 8,000
Accounts Receivable 45,000
Service Revenue 90,000
Utilities Expense 3,000
Salaries Expense 22,000
Interest Expense 4,500
Supplies Expense 8,000
Depreciation Expense of Furniture 7,000
Accumulated Depreciation of Furniture 7,000
Depreciation Expense of Computers 10,500
Accumulated Depreciation of Computers 10,500
Dividends 6,500

Total 275,500 275,500

 Income Statement
Service Revenue 90,000
Operating Expenses

Utilities Expense 3,000

Salaries Expense 22,000
Interest Expense 4,500
Supplies Expense 8,000
Rent Expense 12,000
Depreciation Expense of Furniture 7,000
Depreciation Expense of Computers 10,500
Total Operating Expenses (67,000)
Net Income 23,000
 Statement of Retained Earnings

Retained Earnings, Beginning Balance 0

Net Income 23,000
- Dividends (6,500)
Change in Equity 16,500
Retained Earnings, Ending Balance 16,500
 Balance Sheet
Assets Liabilities
Current assets Current Liabilities
Cash 40,000 Accounts Payable 8,000
Accounts Receivable 45,000
Supplies 5,000

Total Current Assets 90,000 Total Current Liabilities 8,000

Non-Current Assets Non-Current Liabilities

Computers 42,000 Long Term HSBC loan 20,000
Less Acc. Dep. (10,500) 31,500
Total Non-Current Liabilities 20,000
Furniture 70,000
Less Acc. Dep. (7,000) 63,000 Stockholders’ Equity
Common Stock 140,000
Retained Earnings 16,500

Total Non current 94,500

Assets Total Stockholder’s Equity 156,500

Total Assets 184,500 Total Liabilities and Stockholders’ 184,500

Equity
 Cash Flow Statement
Cash provided by operations

Investing Cash Flow

Financing Cash Flow