Tall Grass Development has the following information at December 31, 2018. Cash Accounts Receivable Office Supplies (Asset) Prepaid Insurance Factory Equipment Land Accum Depn-Factory Note Payable Accounts Payable Interest Payable Salaries Payable Owners Capital, Beginning Owners Withdrawals Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Utilities Expense Totals On the next few pages do the following: 1) Prepare the company's Income statement 2) Prepare a statement of Owner's equity 3) Prepare the company's Balance sheet Please us the er chapter 4 format Debits 8,200 7,300 500 900 85,000 15,000 19,400 5,000 3,300 16,500 8,800 Credits 2,500 1,100 48,500 60,000 1,800 3,000 4,200 21,000 35,000 173,500 173,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
**Tall Grass Development Financial Information as of December 31, 2018**

### Account Information

**Assets:**
- Cash: $8,200
- Accounts Receivable: $7,300
- Office Supplies (Asset): $500
- Prepaid Insurance: $900
- Factory: $85,000
- Equipment: $15,000
- Accumulated Depreciation - Factory: $19,400

**Liabilities and Owners' Equity:**
- Note Payable: $48,500
- Accounts Payable: $3,000
- Interest Payable: $1,000
- Salaries Payable: $2,600
- Owner's Capital - Beginning: $35,000
- Owner's Withdrawals: $5,000

**Revenues:**
- Service Revenue: $60,000

**Expenses:**
- Salaries Expense: $16,500
- Insurance Expense: $3,300
- Supplies Expense: $2,500
- Utilities Expense: $8,800
- Interest Expense: $1,100

**Totals:**
- Total Debits: $173,500
- Total Credits: $173,500

### Instructions

On the next few pages, complete the following tasks:
1. Prepare the company's Income Statement.
2. Prepare the Statement of Owner's Equity.
3. Prepare the company's Balance Sheet.

**Note: Please use the proper Chapter 4 format when preparing these statements.**
Transcribed Image Text:**Tall Grass Development Financial Information as of December 31, 2018** ### Account Information **Assets:** - Cash: $8,200 - Accounts Receivable: $7,300 - Office Supplies (Asset): $500 - Prepaid Insurance: $900 - Factory: $85,000 - Equipment: $15,000 - Accumulated Depreciation - Factory: $19,400 **Liabilities and Owners' Equity:** - Note Payable: $48,500 - Accounts Payable: $3,000 - Interest Payable: $1,000 - Salaries Payable: $2,600 - Owner's Capital - Beginning: $35,000 - Owner's Withdrawals: $5,000 **Revenues:** - Service Revenue: $60,000 **Expenses:** - Salaries Expense: $16,500 - Insurance Expense: $3,300 - Supplies Expense: $2,500 - Utilities Expense: $8,800 - Interest Expense: $1,100 **Totals:** - Total Debits: $173,500 - Total Credits: $173,500 ### Instructions On the next few pages, complete the following tasks: 1. Prepare the company's Income Statement. 2. Prepare the Statement of Owner's Equity. 3. Prepare the company's Balance Sheet. **Note: Please use the proper Chapter 4 format when preparing these statements.**
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education