1. Prepare an income statement. Vance Company Income Statement For Year Ended June 30, 20-- Revenue: 37,218 Expenses: Total Expenses
1. Prepare an income statement. Vance Company Income Statement For Year Ended June 30, 20-- Revenue: 37,218 Expenses: Total Expenses
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 25BEB: Jasmine Company provided the following income statements for its first 3 years of operation: Refer...
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| ACCOUNT NAME | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | ||
| 1 | Cash | 5,702.00 | 0 | 0 | 0 | 5,702.00 | 0 | 0 | 0 | 5,702.00 | 0 | 1 |
| 2 | Accounts Receivable | 809.00 | 0 | 0 | 0 | 809.00 | 0 | 0 | 0 | 809.00 | 0 | 2 |
| 3 | Supplies | 551.00 | 0 | 0 | 240.00 | 311.00 | 0 | 0 | 0 | 311.00 | 0 | 3 |
| 4 | Prepaid Insurance | 1,320.00 | 0 | 0 | 545.00 | 775.00 | 0 | 0 | 0 | 775.00 | 0 | 4 |
| 5 | Equipment | 7,351.00 | 0 | 0 | 0 | 7,351.00 | 0 | 0 | 0 | 7,351.00 | 0 | 5 |
| 6 | Accum. Depr., Equipment | 0 | 2,722.00 | 0 | 740.00 | 0 | 3,462.00 | 0 | 0 | 0 | 3,462.00 | 6 |
| 7 | Van | 10,468.00 | 0 | 0 | 0 | 10,468.00 | 0 | 0 | 0 | 10,468.00 | 0 | 7 |
| 8 | Accumulated Depreciation, Van | 0 | 3,274.00 | 0 | 1,255.00 | 0 | 4,529.00 | 0 | 0 | 0 | 4,529.00 | 8 |
| 9 | Accounts Payable | 0 | 1,536.00 | 0 | 0 | 0 | 1,536.00 | 0 | 0 | 0 | 1,536.00 | 9 |
| 10 | B. Vance, Capital | 0 | 19,748.00 | 0 | 0 | 0 | 19,748.00 | 0 | 0 | 0 | 19,748.00 | 10 |
| 11 | B. Vance, Drawing | 15,880.00 | 0 | 0 | 0 | 15,880.00 | 0 | 0 | 0 | 15,880.00 | 0 | 11 |
| 12 | Fees Earned | 0 | 37,218.00 | 0 | 0 | 0 | 37,218.00 | 0 | 37,218.00 | 0 | 0 | 12 |
| 13 | Salaries Expense | 18,295.00 | 0 | 660.00 | 0 | 18,955.00 | 0 | 18,955.00 | 0 | 0 | 0 | 13 |
| 14 | Advertising Expense | 2,119.00 | 0 | 0 | 0 | 2,119.00 | 0 | 2,119.00 | 0 | 0 | 0 | 14 |
| 15 | Van Operating Expense | 795.00 | 0 | 0 | 0 | 795.00 | 0 | 795.00 | 0 | 0 | 0 | 15 |
| 16 | Utilities Expense | 1,040.00 | 0 | 0 | 0 | 1,040.00 | 0 | 1,040.00 | 0 | 0 | 0 | 16 |
| 17 | Miscellaneous Expense | 168.00 | 0 | 0 | 0 | 168.00 | 0 | 168.00 | 0 | 0 | 0 | 17 |
| 18 | 64,498.00 | 64,498.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18 | |
| 19 | Insurance Expense | 0 | 0 | 545.00 | 0 | 545.00 | 0 | 545.00 | 0 | 0 | 0 | 19 |
| 20 | Depr. Exp., Equipment | 0 | 0 | 740.00 | 0 | 740.00 | 0 | 740.00 | 0 | 0 | 0 | 20 |
| 21 | Depreciation Expense, Van | 0 | 0 | 1,255.00 | 0 | 1,255.00 | 0 | 1,255.00 | 0 | 0 | 0 | 21 |
| 22 | Salaries Payable | 0 | 0 | 0 | 660.00 | 0 | 660.00 | 0 | 0 | 0 | 660.00 | 22 |
| 23 | Supplies Expense | 0 | 0 | 240.00 | 0 | 240.00 | 0 | 240.00 | 0 | 0 | 0 | 23 |
| 24 | 0 | 0 | 3,440.00 | 3,440.00 | 67,153.00 | 67,153.00 | 25,857.00 | 37,218.00 | 41,296.00 | 29,935.00 | 24 | |
| 25 | Net Income | 0 | 0 | 0 | 0 | 0 | 0 | 11,361.00 | 0 | 0 | 11,361.00 | 25 |
| 26 | 0 | 0 | 0 | 0 | 0 | 0 | 37,218.00 | 37,218.00 | 41,296.00 | 41,296.00 | 26 |
Required:
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Transcribed Image Text:Required:
1. Prepare an income statement.
Vance Company
Income Statement
For Year Ended June 30, 20--
Revenue:
37,218
Expenses:
Total Expenses
Net Income
%24
%24
Transcribed Image Text:2. Prepare a statement of owner's equity. Assume that there was an additional investment of $2,400 on June 10.
Vance Company
Statement of Owner's Equity
For Year Ended June 30, 20--
Subtotal
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