Financial Statements 1. Prepare an income statement for Kohl's Home Repair for the month ended May 31, 20--. 2. Prepare a statement of owner's equity for Kohl's Home Repair for the month ended May 31, 20--. If an amount box does not require an entry, leave it blank or enter "0". 3. Prepare a balance sheet for Kohl's Home Repair as of May 31, 20--. Wilhelm Kohl started a business in May 20-- called Kohl's Home Repair. Kohl hired a part-time college student as an assistant. On May 31, 20--, the ledger balances for Kohl's Home Repair were as follows: Accounts Balance Accounts Payable $ 4,024 Accounts Receivable 2,990 Cash 21,750 Equipment 8,160 Gas and Oil Expense 138 Wilhelm Kohl, Capital 25,165 Wilhelm Kohl, Drawing 2,807 Office Supplies 117 Prepaid Insurance 1,082 Rent Expense 897 Service Fees 15,792 Phone Expense 262 Van 6,019 Wages Expense 759 Income Statement 1. Prepare an income statement for Kohl's Home Repair for the month ended May 31, 20--. Kohl's Home Repair Income Statement For Month Ended May 31, 20-- Revenue: Accounts payable $fill in the blank ad9cf2ff0ff2fd5_3 Liabilities: Office supplies $fill in the blank ad9cf2ff0ff2fd5_6 fill in the blank ad9cf2ff0ff2fd5_8 fill in the blank ad9cf2ff0ff2fd5_10 fill in the blank ad9cf2ff0ff2fd5_12 Total expenses fill in the blank ad9cf2ff0ff2fd5_13 $fill in the blank ad9cf2ff0ff2fd5_15 Feedback Income Statement Revenues – Expenses = Net Income or Net Loss Statement of Owner's Equity 2. Prepare a statement of owner's equity for Kohl's Home Repair for the month ended May 31, 20--. If an amount box does not require an entry, leave it blank or enter "0". Kohl's Home Repair Statement of Owner's Equity For Month Ended May 31, 20-- $fill in the blank a6a3cf030fee05b_2 fill in the blank a6a3cf030fee05b_4 Total investment $fill in the blank a6a3cf030fee05b_5 $fill in the blank a6a3cf030fee05b_7 fill in the blank a6a3cf030fee05b_9 fill in the blank a6a3cf030fee05b_11 $fill in the blank a6a3cf030fee05b_13 Feedback Statement of Owner's Equity Beginning capital Additional investments Total investment Net income Less Withdrawals Increase or decrease in capital Ending capital Refer to Figure 3-23 in the text. Balance Sheet 3. Prepare a balance sheet for Kohl's Home Repair as of May 31, 20--. Kohl's Home Repair Balance Sheet May 31, 20-- Assets Liabilities $fill in the blank 8eed2c078f9603d_2 $fill in the blank 8eed2c078f9603d_4 fill in the blank 8eed2c078f9603d_6 fill in the blank 8eed2c078f9603d_8 fill in the blank 8eed2c078f9603d_10 fill in the blank 8eed2c078f9603d_12 Owner's Equity fill in the blank 8eed2c078f9603d_14 fill in the blank 8eed2c078f9603d_16 Total assets $fill in the blank 8eed2c078f9603d_17 Total liabilities & owner's equity $fill in the blank 8eed2c078f9603d_18
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Financial Statements
1. Prepare an income statement for Kohl's Home Repair for the month ended May 31, 20--.
2. Prepare a statement of owner's equity for Kohl's Home Repair for the month ended May 31, 20--. If an amount box does not require an entry, leave it blank or enter "0".
3. Prepare a balance sheet for Kohl's Home Repair as of May 31, 20--.
Wilhelm Kohl started a business in May 20-- called Kohl's Home Repair. Kohl hired a part-time college student as an assistant. On May 31, 20--, the ledger balances for Kohl's Home Repair were as follows:
| Accounts | Balance | |
| Accounts Payable | $ | 4,024 |
| Accounts Receivable | 2,990 | |
| Cash | 21,750 | |
| Equipment | 8,160 | |
| Gas and Oil Expense | 138 | |
| Wilhelm Kohl, Capital | 25,165 | |
| Wilhelm Kohl, Drawing | 2,807 | |
| Office Supplies | 117 | |
| Prepaid Insurance | 1,082 | |
| Rent Expense | 897 | |
| Service Fees | 15,792 | |
| Phone Expense | 262 | |
| Van | 6,019 | |
| Wages Expense | 759 |
1. Prepare an income statement for Kohl's Home Repair for the month ended May 31, 20--.
| Kohl's Home Repair | ||
| Income Statement | ||
| For Month Ended May 31, 20-- | ||
| Revenue: | ||
| Accounts payable | $fill in the blank ad9cf2ff0ff2fd5_3 | |
| Liabilities: | ||
| Office supplies | $fill in the blank ad9cf2ff0ff2fd5_6 | |
| fill in the blank ad9cf2ff0ff2fd5_8 | ||
| fill in the blank ad9cf2ff0ff2fd5_10 | ||
| fill in the blank ad9cf2ff0ff2fd5_12 | ||
| Total expenses | fill in the blank ad9cf2ff0ff2fd5_13 | |
| $fill in the blank ad9cf2ff0ff2fd5_15 |
| Income Statement |
| Revenues |
| – Expenses |
| = Net Income or Net Loss |
2. Prepare a statement of owner's equity for Kohl's Home Repair for the month ended May 31, 20--. If an amount box does not require an entry, leave it blank or enter "0".
| Kohl's Home Repair | ||
| Statement of Owner's Equity | ||
| For Month Ended May 31, 20-- | ||
| $fill in the blank a6a3cf030fee05b_2 | ||
| fill in the blank a6a3cf030fee05b_4 | ||
| Total investment | $fill in the blank a6a3cf030fee05b_5 | |
| $fill in the blank a6a3cf030fee05b_7 | ||
| fill in the blank a6a3cf030fee05b_9 | ||
| fill in the blank a6a3cf030fee05b_11 | ||
| $fill in the blank a6a3cf030fee05b_13 |
| Statement of Owner's Equity |
| Beginning capital |
| Additional investments |
| Total investment |
| Net income |
| Less Withdrawals |
| Increase or decrease in capital |
| Ending capital |
Refer to Figure 3-23 in the text.
3. Prepare a balance sheet for Kohl's Home Repair as of May 31, 20--.
| Kohl's Home Repair Balance Sheet May 31, 20-- |
|||
|---|---|---|---|
| Assets | Liabilities | ||
| $fill in the blank 8eed2c078f9603d_2 | $fill in the blank 8eed2c078f9603d_4 | ||
| fill in the blank 8eed2c078f9603d_6 | |||
| fill in the blank 8eed2c078f9603d_8 | |||
| fill in the blank 8eed2c078f9603d_10 | |||
| fill in the blank 8eed2c078f9603d_12 | Owner's Equity | ||
| fill in the blank 8eed2c078f9603d_14 | fill in the blank 8eed2c078f9603d_16 | ||
| Total assets | $fill in the blank 8eed2c078f9603d_17 | Total liabilities & owner's equity |
$fill in the blank 8eed2c078f9603d_18
|
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