Create the financial statement ( Income statement and Balance sheet ) for NetSolutions using the Summary transaction. EXHIBIT 5Summary of Transaction for NetSolutionsAssets= Llabilitles +Stockholders' EquityAccounts CommonFees Wages Rent Supplies Utilities Misc.Cash + Supp. + Land = Payable + Stock - Dividends + Earned - Exp. - Exp. - Exp. - Exp. - Exp.a. +25,000b. -20,000Bal.+25,000+20,00020,00025,0005,000+1,3505,000 +1,350+1,350+1,350C.Bal.20,00025,000d.+7,500Bal. 12,500 1,350-3,650Bal.+7,5007,500-2,125 -8007,500 -2,125 -80020,0001,35025,000e.-450-2758,850 1,35020,0001,350-95025,000-450-275f.-950Bal.7,900 1,350-8005507,500 -2,125 -800-8007,500 -2,125 -800 -80020,00040025,000-450-275g.Bal.7,90020,00040025,000-450-275h.-2,000-2,000-2,000Bal.5,90055020,00040025,0007,500 -2,125 -800 -800-450-275

Financial statement is prepared from the trial balance which include :- Profit and loss and…

Answered: Create the financial statement ( Income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Create the financial statement ( Income statement and Balance sheet ) for NetSolutions using the Summary transaction.

EXHIBIT 5
Summary of Transaction for NetSolutions
Assets
= Llabilitles +
Stockholders' Equity
Accounts Common
Fees Wages Rent Supplies Utilities Misc.
Cash + Supp. + Land = Payable + Stock - Dividends + Earned - Exp. - Exp. - Exp. - Exp. - Exp.
a. +25,000
b. -20,000
Bal.
+25,000
+20,000
20,000
25,000
5,000
+1,350
5,000 +1,350
+1,350
+1,350
C.
Bal.
20,000
25,000
d.
+7,500
Bal. 12,500 1,350
-3,650
Bal.
+7,500
7,500
-2,125 -800
7,500 -2,125 -800
20,000
1,350
25,000
e.
-450
-275
8,850 1,350
20,000
1,350
-950
25,000
-450
-275
f.
-950
Bal.
7,900 1,350
-800
550
7,500 -2,125 -800
-800
7,500 -2,125 -800 -800
20,000
400
25,000
-450
-275
g.
Bal.
7,900
20,000
400
25,000
-450
-275
h.
-2,000
-2,000
-2,000
Bal.
5,900
550
20,000
400
25,000
7,500 -2,125 -800 -800
-450
-275

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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