Terrell Company reported the following data at the end of its first year of operations on December 31. Equipment $ 23,500 Accounts payable 12,500 Owner investments 27,500 Terrell, Withdrawals 10,500 Services revenue 64,500 Rent revenue 14,500 Salaries expense 42,500 Advertising expense 8,500 Utilities expense 6,500 (a) Prepare its year-end income statement. (b) Prepare its year-end statement of owner's equity, using net income calculated in part a. Hint: Terrell, Capital on January 1 was $0.

Terrell Company reported the following data at the end of its first year of operations on December 31. Equipment $ 23,500 Accounts payable 12,500 Owner investments 27,500 Terrell, Withdrawals 10,500 Services revenue 64,500 Rent revenue 14,500 Salaries expense 42,500 Advertising expense 8,500 Utilities expense 6,500 (a) Prepare its year-end income statement. (b) Prepare its year-end statement of owner's equity, using net income calculated in part a. Hint: Terrell, Capital on January 1 was $0.

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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