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Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000.

FINANCIAL ACCOUNTING
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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**Baxter Company Adjusted Trial Balance** *December 31, 2020* | Account | Amount | |------------------------------------|---------| | Cash | $6,000 | | Accounts Receivable | $2,300 | | Prepaid Expenses | $750 | | Equipment | $13,400 | | Accumulated Depreciation | $1,300 | | Accounts Payable | $1,600 | | Notes Payable - Due on June 30, 2021| $5,600 | | Baxter C., Capital | $12,000 | | Baxter C., Drawing | $1,000 | | Fees Earned | $6,000 | | Wages Expense | $1,450 | | Rent Expense | $900 | | Utilities Expense | $400 | | Depreciation Expense | $225 | | Miscellaneous Expense | $75 | | **Total** | **$26,500** | Instructions: - Prepare an Income Statement, Balance Sheet, and Statement of Owner’s Equity. - Assume that the capital account started with a beginning balance of $10,000. **Hint:** There were $2,000 ($12,000 adjusted trial balance capital - $10,000 beginning capital balance) of contributions during the period.
Transcribed Image Text:**Baxter Company Adjusted Trial Balance** *December 31, 2020* | Account | Amount | |------------------------------------|---------| | Cash | $6,000 | | Accounts Receivable | $2,300 | | Prepaid Expenses | $750 | | Equipment | $13,400 | | Accumulated Depreciation | $1,300 | | Accounts Payable | $1,600 | | Notes Payable - Due on June 30, 2021| $5,600 | | Baxter C., Capital | $12,000 | | Baxter C., Drawing | $1,000 | | Fees Earned | $6,000 | | Wages Expense | $1,450 | | Rent Expense | $900 | | Utilities Expense | $400 | | Depreciation Expense | $225 | | Miscellaneous Expense | $75 | | **Total** | **$26,500** | Instructions: - Prepare an Income Statement, Balance Sheet, and Statement of Owner’s Equity. - Assume that the capital account started with a beginning balance of $10,000. **Hint:** There were $2,000 ($12,000 adjusted trial balance capital - $10,000 beginning capital balance) of contributions during the period.
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