
Concept explainers
Introduction:
Financial Statement:
The statement or record of financial activities of the business or a company in a structured and simple manner in the form of report for a period refers to the financial statement. The financial statement is essential for the business because it is the key indicator of financial results of the business that reports the true and fair position of the business. There are four basic financial statements that includes:
a. Income Statement
b. Statement of Owner’s Equity
c.
d.
Requirement-1:
To prepare:
The income statement of Golden City Barbershop for the year ended December 31st, 2016 to determine the net income of the company.
Requirement-2:
To prepare:
The statement of Owner’s Equity of Golden City Barbershop for the year ended December 31st, 2016 to determine the Owner’s Capital at the end of the year.
Requirement-3:
To prepare:
The balance sheet of Golden City Barbershop for the year ended December 31st, 2016 to determine the financial position of the company.

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Chapter 1 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
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