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Income Statement, Statement of Owner's Equity, and Balance Sheet for a sole proprietor

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On August 1, 2014, S Khan invested $90,000 in her new company, Khan Company. During August, he made $10,000 of withdrawals 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

Prepare each of the following for Khan Company:
A) an income statement for August
B) a statement of owner's equity for August
C) a balance sheet as of August 31

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Solution Summary

Prepare the Income Statement, Statement of Owners Equity, and Balance Sheet for a Sole Proprietorship.

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FINANCIAL STATEMENTS FOR A SOLE PROPRIETOR

A) Khan Company
Income Statement
For the Month Ended August 31, 2014

Revenue:
Construction revenue $80,000
Operating expenses:
Salary expense $46,000
Rent expense 7,000
Utilities ...

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