Q1. Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018. Owner investment,2018 $ 32,000 Land $ 7,000 Accounts payable $ 14,000 Notes payable $ 30,000 Accounts receivable $ 1,700 Property tax expense $ 2,900 Advertising expense $ 17,000 KPMS, drawing $ 32,000 Building $ 137,900 Rent expense $ 13,000 Cash $ 6,000 Salary expense $ 69,000 Equipment $ 17,000 Salary payable $ 500 Insurance Expense $ 2,000 Service revenue $ 192,000 Interest Expense $ 6,000 Supplies $ 8,000 KPMS, Capital 12/31/2018 $ 51,000 Requirements: 1. Prepare KPMS Delivery’s 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?
Q1. Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018.
Owner investment,2018 $ 32,000 Land $ 7,000
Accounts payable $ 14,000 Notes payable $ 30,000
Advertising expense $ 17,000 KPMS, drawing $ 32,000
Building $ 137,900 Rent expense $ 13,000
Cash $ 6,000 Salary expense $ 69,000
Equipment $ 17,000 Salary payable $ 500
Insurance Expense $ 2,000 Service revenue $ 192,000
Interest Expense $ 6,000 Supplies $ 8,000
KPMS, Capital 12/31/2018 $ 51,000
Requirements:
1. Prepare KPMS Delivery’s income statement.
2. Prepare the statement of owner’s equity.
3. Prepare the
4. Answer these questions about the company:
a. Was the result of operations for the year a
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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