
Concept Introduction:
Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a
Balance Sheet: The balance sheet provides details of the firm’s assets, liabilities and owner’s equity for a given date. The balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The balance sheet follows the below rule
Assets = Liabilities + equity
Income Statement: It is also called the profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.
Statement of Cash Flows: It is a financial statement that shows the movements of cash and bank balance during a period. It describes the amount of cash generated by a company during a period and the use of the cash.
Statement of change in equity: It is a financial statement that shows the movements of equity capital during a period.
1.
To prepare: A table in required format for the given data

Explanation of Solution
The required table for the given data is prepared as below:
Assets | Liabilities | + | Equity | ||||||||||||
Date | Cash | + | + | Equipment | = | Account Payable | + | N. Niko Capital | - | N. Niko withdrawals | + | Revenues | - | Expenses | |
1 | $130,000 | $130,000 | |||||||||||||
2 | -6,000 | -6,000 | |||||||||||||
4 | 2,400 | 2,400 | |||||||||||||
6 | -1,150 | -1,150 | |||||||||||||
8 | 850 | 850 | |||||||||||||
14 | 7,500 | 7,500 | |||||||||||||
16 | -800 | -800 | |||||||||||||
20 | 7,500 | -7,500 | |||||||||||||
21 | 7,900 | 7,900 | |||||||||||||
24 | 675 | 675 | |||||||||||||
25 | 7,900 | -7,900 | |||||||||||||
26 | -2,400 | -2,400 | |||||||||||||
28 | -800 | -800 | |||||||||||||
29 | -4,000 | -4,000 | |||||||||||||
30 | -150 | -150 | |||||||||||||
30 | -890 | -890 | |||||||||||||
130,060 | + | 675 | + | 2,400 | = | 0 | + | 130,000 | - | -4,000 | + | 16,925 | - | -9,790 |
2.
To Prepare: The income statement, statement of owner’s equity and the balance sheet from the given data.

Explanation of Solution
The income statement for Niko’s Maintenance Co for June month is as below.
Niko’s Maintenance Co | |||
Income Statement for the month June | |||
Details | Amount in $ | ||
Revenue | |||
Income from maintain services | $16,925 | ||
Expenses | |||
Rent expenses | 6,000 | ||
Administrative expenses | 1,150 | ||
Salary expenses | 1,600 | ||
Telephone bill | 150 | ||
Utilities expenses | 890 | 9,790 | |
Net income | $7,135 |
The statement of owner’s equity for Niko’s Maintenance Co for the month of June is as below
Niko’s Maintenance Co | ||
Statement of owner’s equity for the month of June | ||
Details | Amount in $ | |
Opening equity | 0 | |
Add: Equity introduced in form of cash | 130,000 | |
Add: Net income for the year | 7,135 | |
Less: Cash withdrawals | -4,000 | |
Closing equity as on June 30 | $133,135 |
The balance sheet as of June 30 is as below.
Niko’s Maintenance Co | ||
Balance Sheet as on June 30 | ||
Details | Amount in $ | |
Liabilities | ||
Equity | $133,135 | |
Account payable | 0 | |
Total | $133,135 | |
Assets | ||
Cash | $130,060 | |
Account receivable | $675 | |
Equipments | $2,400 | |
Total | $133,135 |
3.
To Prepare: A statement of cash flows for the month of June.

Explanation of Solution
The statement of cash flows for the month of June is prepared as below.
Niko’s Maintenance Co | |||
Statement of Cash flow for the month of June | |||
Amount in $ | |||
Opening cash balance | 0 | ||
Cash flow from operating activities | |||
Rent paid in cash | -6,000 | ||
Advertising exp paid in cash | -1,150 | ||
Revenue received in cash | 850 | ||
Cash received from customer | 7,500 | ||
Cash received from customer | 7,900 | ||
Salary paid in cash | -1,600 | ||
Telephone bill paid in cash | -150 | ||
Utilities expenses paid in cash | -890 | 6460 | |
Cash flow from financing activities | |||
Cash paid to supplier of equipment | -2,400 | ||
Cash flow from investing activities | |||
Cash received from Owner | 130,000 | ||
Cash withdrawals by owner | -4,000 | 126,000 | |
Cash Balance as on June 30 | 130,060 |
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