10) On August 1, 2005, Sarah Brown invested $90,000 in her new business, Brown Construction. During August, she withdrew $10,000 from the business. The amounts of the various assets, liabilities, revenues and expenses are as follows: Accounts payable, $9,000, Accounts Receivable, $26,000, Cash, $5,400, Construction revenue, $80,000, Prepaid Insurance, $2,000, Land, $75,000, Miscellaneous expense, $1,400, Insurance expense, $2,000, Rent expense, $7,000, Salary expense, $46,000, Supplies, $900, Supplies expense, $300, Utilities expense, $3,000. (16 points)
Prepare each of the following for Brown Construction Company:
a. an income statement for August
b. a statement of owner's equity for August, and
c. a balance sheet as of August 31.
INSERT YOUR STATEMENTS HERE
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The solution prepares income statement,a statement of owner's equity & balance sheet in construction accounting.