The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown. Jay Pembroke Income Statement For Month Ended April 30, 20-- Revenues: Service fees Expenses: Rent expense Net income Jay Pembroke, capital, April 1, 20-- Investment during April Jay Pembroke Statement of Owner's Equity For Month Ended April 30, 20-- Total investment Net income for April Less withdrawals for April Increase in capital Jay Pembroke, capital, April 30, 20-- Cash Assets $3,600 ✓ 900 $2,700 Check My Work $2,700 Required: Use the information to prepare a balance sheet for Jay Pembroke as of April 30, 20--. Jay Pembroke Balance Sheet April 30, 20-- 150 $- 20,000 $20,000 2,550 $22,550 Liabilities. Accounts Payable ✓ Fmail Inst

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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Balance Sheet
Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.
a. Invested cash in business, $20,000.
b. Bought office supplies for $4,500: $1,800 in cash and $2,700 on account.
c. Paid one-year insurance premium, $1,100.
d. Earned revenues totaling $3,600: $1,400 in cash and $2,200 on account.
e. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,350.
f. Paid office rent for the month, $900.
g. Withdrew cash for personal use, $150.
The effect of each transaction is shown in the individual accounts of the expanded accounting equation.
Assets
= Liabilities +
(Amts.
Owed)
a.
b.
C.
20,000
(1,800)
(1,100)
1,400
(2,350)
(900)
9.
(150)
Bal. 15,100 +
d.
e.
Cash
f.
+
Revenues:
Accounts
Receivable
Service fees
Expenses:
(Items Owned)
Rent expense
Check My Work
2,200
+
2,200 +
Jay Pembroke
Income Statement
For Month Ended April 30, 20--
Office
Supplies
4,500
4,500 +
+
$3,600
900
Prepaid
Insurance
1,100
Print Item
1,100
=
Accounts
Payable
2,700
(2,350)
The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown.
+
350 +
(Owner's Investment)
J. Pembroke,
Capital
20,000
Owner's Equity
20,000
J. Pembroke,
Drawing
150
150 +
(Earnings)
+ Revenues - Expenses
3,600
3,600 -
900
900
Description
Service fees
Rent expense
Transcribed Image Text:Balance Sheet Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. a. Invested cash in business, $20,000. b. Bought office supplies for $4,500: $1,800 in cash and $2,700 on account. c. Paid one-year insurance premium, $1,100. d. Earned revenues totaling $3,600: $1,400 in cash and $2,200 on account. e. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,350. f. Paid office rent for the month, $900. g. Withdrew cash for personal use, $150. The effect of each transaction is shown in the individual accounts of the expanded accounting equation. Assets = Liabilities + (Amts. Owed) a. b. C. 20,000 (1,800) (1,100) 1,400 (2,350) (900) 9. (150) Bal. 15,100 + d. e. Cash f. + Revenues: Accounts Receivable Service fees Expenses: (Items Owned) Rent expense Check My Work 2,200 + 2,200 + Jay Pembroke Income Statement For Month Ended April 30, 20-- Office Supplies 4,500 4,500 + + $3,600 900 Prepaid Insurance 1,100 Print Item 1,100 = Accounts Payable 2,700 (2,350) The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown. + 350 + (Owner's Investment) J. Pembroke, Capital 20,000 Owner's Equity 20,000 J. Pembroke, Drawing 150 150 + (Earnings) + Revenues - Expenses 3,600 3,600 - 900 900 Description Service fees Rent expense
The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown.
Jay Pembroke
Income Statement
For Month Ended April 30, 20--
Revenues:
Service fees
Expenses:
Rent expense
Net income
Jay Pembroke, capital, April 1, 20--
Investment during April
Jay Pembroke
Statement of Owner's Equity
For Month Ended April 30, 20--
Total investment
Net income for April
Less withdrawals for April
Increase in capital
Jay Pembroke, capital, April 30, 20--
Cash
Assets
$3,600
✓
900
$2,700
Check My Work
$2,700
Required:
Use the information to prepare a balance sheet for Jay Pembroke as of April 30, 20--.
Jay Pembroke
Balance Sheet
April 30, 20--
150
$-
20,000
$20,000
2,550
$22,550
Liabilities.
Accounts Payable
✓
Email Inst
Transcribed Image Text:The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown. Jay Pembroke Income Statement For Month Ended April 30, 20-- Revenues: Service fees Expenses: Rent expense Net income Jay Pembroke, capital, April 1, 20-- Investment during April Jay Pembroke Statement of Owner's Equity For Month Ended April 30, 20-- Total investment Net income for April Less withdrawals for April Increase in capital Jay Pembroke, capital, April 30, 20-- Cash Assets $3,600 ✓ 900 $2,700 Check My Work $2,700 Required: Use the information to prepare a balance sheet for Jay Pembroke as of April 30, 20--. Jay Pembroke Balance Sheet April 30, 20-- 150 $- 20,000 $20,000 2,550 $22,550 Liabilities. Accounts Payable ✓ Email Inst
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