P1-35A O Preparing financial statements and evaluating business performance [20-30 min) Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. S 8,000 Owner investment, 2012 $ 28,000 32,000 Accounts payable 2,600 Accounts receivable Land Note payable Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 11,000 1,000 30,000 Advertising expense 13,000 Building 15,000 145,200 65,000 Cash 3,000 1,300 Equipment 192,000 Insurance expense 10,000 Interest expense $4,000 16,000 Service revenue 2,500 Supplies 7,000 Wayne, capital, 12/31/2011 Requirements 1. Prepare Gate City Answering Services income statement. 2. Prepare the statement of owner's equity. 3. Prepare the balance sheet. 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?
P1-35A O Preparing financial statements and evaluating business performance [20-30 min) Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. S 8,000 Owner investment, 2012 $ 28,000 32,000 Accounts payable 2,600 Accounts receivable Land Note payable Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 11,000 1,000 30,000 Advertising expense 13,000 Building 15,000 145,200 65,000 Cash 3,000 1,300 Equipment 192,000 Insurance expense 10,000 Interest expense $4,000 16,000 Service revenue 2,500 Supplies 7,000 Wayne, capital, 12/31/2011 Requirements 1. Prepare Gate City Answering Services income statement. 2. Prepare the statement of owner's equity. 3. Prepare the balance sheet. 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Q7.
P1-35A O0 Preparing financial statements and evaluating business performance
[20-30 min]
Presented here are the accounts of Gate City Answering Service for the year ended
December 31, 2012.
S 8,000 Owner investment, 2012 S 28,000
32,000 Accounts payable
|Land
Note payable
Property tax expense
Wayne, drawing
Rent expense
Salary expense
Salary payable
Service revenue
Supplies
Wayne, capital, 12/31/2011
11,000
2,600 Accounts receivable
1,000
30,000 Advertising expense
13,000 Building
65,000 Cash
15,000
145,200
3,000
1,300 Equipment
16,000
192,000 Insurance expense
10,000 Interest expense
$4,000
2,500
7,000
Requirements
1. Prepare Gate City Answering Services income statement.
2. Prepare the statement of owner's equity.
3. Prepare the balance sheet.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves
into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the owner's equity in the business at the end of
the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb54ef5bc-019c-4361-94ad-2836f815a548%2Fad811fb8-e802-4a5a-aa26-419fa6632872%2F5bx1phk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q7.
P1-35A O0 Preparing financial statements and evaluating business performance
[20-30 min]
Presented here are the accounts of Gate City Answering Service for the year ended
December 31, 2012.
S 8,000 Owner investment, 2012 S 28,000
32,000 Accounts payable
|Land
Note payable
Property tax expense
Wayne, drawing
Rent expense
Salary expense
Salary payable
Service revenue
Supplies
Wayne, capital, 12/31/2011
11,000
2,600 Accounts receivable
1,000
30,000 Advertising expense
13,000 Building
65,000 Cash
15,000
145,200
3,000
1,300 Equipment
16,000
192,000 Insurance expense
10,000 Interest expense
$4,000
2,500
7,000
Requirements
1. Prepare Gate City Answering Services income statement.
2. Prepare the statement of owner's equity.
3. Prepare the balance sheet.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves
into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the owner's equity in the business at the end of
the year?
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