Doug Maltbee formed a lawn service business as a summer job. To start the business on May 1, he deposited $1,000 in a new bank account in the name of the proprietorship. The $1,000 consisted of a $600 loan from his father and $400 of his own money. Doug rented lawn equipment, purchased supplies, and hired fellow students to mow and trim his customer's lawns.
At the end of each month, Doug mailed bills to his customers. On August 31, he was ready to dissolve the business and return to Louisiana State University for the fall semester. Because he was so busy, he kept few records other than his checkbook and a list of amounts owed to him by customers.
At August 31, Doug's checkbook shows a balance of $690, and his customers still owe him $500. During the summer, he collected $4,250 from customers. His checkbook lists payments for supplies totaling $400, and he still has gasoline, weed-eater cord, and other supplies that cost a total of $50. He paid his employees $1,900, and he still owes them $200 for the final week of the summer.
Doug rented some equipment from Scholes Machine Shop. On May 1, he signed a six-month lease on mowers and paid $600 for the full lease period. Scholes will refund the unused potion of the prepayment if the equipment is in good shape. To get the refund, Doug has kept the mower in excellent condition. In fact, he had to pay $300 to repair a mower.
To transport employees and equipment to jobs, Doug used a trailer that he bought for $300. He figures that the summer's work used up one-third of the trailer's service potential. The business checkbook lists a payment of $460 for cash withdrawals by Doug during the summer. Doug paid his father back during August.© BrainMass Inc. brainmass.com October 17, 2018, 1:15 am ad1c9bdddf
Income Statement and Classified Balance Sheet
Using the attached data, help me to prepare an income statement and a classified balance sheet.
Cru-Mart, a convenience store opened by UMHB graduates, has the following trial balance for the year ended December 31, 2013.Construct, in good form, an income statement and balance sheet, each on its own worksheet. Account DR CR
Accounts receivable 1,500
Fuel inventory 5,000
Merchandise inventory 3,500
Accounts payable 2,000
Wages payable 1,800
Sales taxes payable 400
Notes payable 2,200
Capital stock 10,000
Retained Earnings (beginning) 6,100
Fuel Sales 20,000
Merchandise Sales 15,000
Fuel Cost of Sales 18,000
Merchandise Cost of Sales 10,000
Wages Expense 1,500
Advertising Expense 500
Supplies expense 250
Rent expense 1,250
Utility Expense 800
Income tax expense 700
Totals 57,500 57,500.