Net Income and Change in Owner's EquityWilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. The trial balance showing balances for the month of May are shown.Kohl's Home RepairTrial BalanceMay 31, 20--AccountDebitBalanceCreditBalanceCash21,805 Accounts Receivable2,700 Office Supplies160 Prepaid Insurance1,100 Equipment8,200 Van6,000 Accounts Payable 4,400Wilhelm Kohl, Capital 25,000Wilhelm Kohl, Drawing2,900 Service Fees 15,500Rent Expense850 Wages Expense800 Phone Expense230 Gas and Oil Expense155 Totals44,90044,900 Required:Determine the following information. Use the format provided below.1.a. Total revenue for the month b. Total expenses for the month c. Net income for the month 2.a. Wilhelm Kohl's original investment in the business + Net income for the month - Owner's drawing Increase (decrease) in capital = Ending owner's equity b. End of month accounting equation:Assets=Liabilities+Owner's Equity = +

Name: Net Income and Change in Owner's EquityWilhelm Kohl started a business
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Description: Net Income and Change in Owner's EquityWilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. The trial balance showing balances for the month of May are shown.Kohl's Home RepairTrial BalanceMay 31, 20--AccountDebitBalanceCreditBalanc

The entire assets of an organization are equal to the sum of its liabilities and shareholders'…

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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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Net Income and Change in Owner's Equity

Wilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. The trial balance showing balances for the month of May are shown.

Kohl's Home Repair Trial Balance May 31, 20--
Account	Debit Balance	Credit Balance
Cash	21,805
Accounts Receivable	2,700
Office Supplies	160
Prepaid Insurance	1,100
Equipment	8,200
Van	6,000
Accounts Payable		4,400
Wilhelm Kohl, Capital		25,000
Wilhelm Kohl, Drawing	2,900
Service Fees		15,500
Rent Expense	850
Wages Expense	800
Phone Expense	230
Gas and Oil Expense	155
Totals	44,900	44,900

Required:

Determine the following information. Use the format provided below.

1.	a. Total revenue for the month
	b. Total expenses for the month
	c. Net income for the month

2.	a. Wilhelm Kohl's original investment in the business
	+ Net income for the month
	- Owner's drawing
	Increase (decrease) in capital
	= Ending owner's equity

b. End of month accounting equation:

Assets	=	Liabilities	+	Owner's Equity
	=		+

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