Q3. O Prepare the income statement [10 min] Elegant Arrangements has just completed operations for the year ended December 31, 2012. This is the third year of operations for the company. As the owner, you want to know how well the business performed during the year. To address this ques- tion, you have assembled the following data: S1-12 Insurance expense Service revenue Supplies expense |Rent expense $ 4,000 Salary expense 74,000 Accounts payable 1,100 Supplies 13,000 Rose, drawing $42,000 6,800 2,100 3,900 Requirement 1. Prepare the income statement of Elegant Arrangements for the year ended December 31, 2012.
Q3. O Prepare the income statement [10 min] Elegant Arrangements has just completed operations for the year ended December 31, 2012. This is the third year of operations for the company. As the owner, you want to know how well the business performed during the year. To address this ques- tion, you have assembled the following data: S1-12 Insurance expense Service revenue Supplies expense |Rent expense $ 4,000 Salary expense 74,000 Accounts payable 1,100 Supplies 13,000 Rose, drawing $42,000 6,800 2,100 3,900 Requirement 1. Prepare the income statement of Elegant Arrangements for the year ended December 31, 2012.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Q3.
S1-12 O Prepare the income statement [10 min]
Elegant Arrangements has just completed operations for the year ended December
31, 2012. This is the third year of operations for the company. As the owner, you
want to know how well the business performed during the year. To address this ques-
tion, you have assembled the following data:
Insurance expense
Service revenue
Supplies expense
Rent expense
$ 4,000 Salary expense
74,000 Accounts payable
1,100 Supplies
13,000 Rose, drawing
$42,000
6,800
2,100
3,900
Requirement
1. Prepare the income statement of Elegant Arrangements for the year ended
December 31, 2012.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb54ef5bc-019c-4361-94ad-2836f815a548%2Ff191c998-da54-4325-bfac-b818ac7cbdc9%2F3osw67_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q3.
S1-12 O Prepare the income statement [10 min]
Elegant Arrangements has just completed operations for the year ended December
31, 2012. This is the third year of operations for the company. As the owner, you
want to know how well the business performed during the year. To address this ques-
tion, you have assembled the following data:
Insurance expense
Service revenue
Supplies expense
Rent expense
$ 4,000 Salary expense
74,000 Accounts payable
1,100 Supplies
13,000 Rose, drawing
$42,000
6,800
2,100
3,900
Requirement
1. Prepare the income statement of Elegant Arrangements for the year ended
December 31, 2012.
![Q4.
E1-18 00 Using the accounting equation to analyze business transactions
[5-10 min]
Great City Builders balance sheet data at May 31, 2012, and June 30, 2012, follow:
May 31, 2012
June 30, 2012
Total assets
$177,000
$213,000
Total liabilities
122,000
144,000
Requirement
1. Following are three situations about owner's investments and drawings of the
business during June. For each situation, compute the amount of net income or
net loss during June 2012.
a. The owner invested $6,000 in the business and made no withdrawals.
b. The owner made no investments. The owner withdrew cash $10,000.
c. The company owner made investments of $18,000 and withdrew cash of $20,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb54ef5bc-019c-4361-94ad-2836f815a548%2Ff191c998-da54-4325-bfac-b818ac7cbdc9%2F50i7to_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q4.
E1-18 00 Using the accounting equation to analyze business transactions
[5-10 min]
Great City Builders balance sheet data at May 31, 2012, and June 30, 2012, follow:
May 31, 2012
June 30, 2012
Total assets
$177,000
$213,000
Total liabilities
122,000
144,000
Requirement
1. Following are three situations about owner's investments and drawings of the
business during June. For each situation, compute the amount of net income or
net loss during June 2012.
a. The owner invested $6,000 in the business and made no withdrawals.
b. The owner made no investments. The owner withdrew cash $10,000.
c. The company owner made investments of $18,000 and withdrew cash of $20,000.
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