Chapter 1, Problem P1.42APGA

P1-42A Preparing financial statements

Learning Objective 5

1. Net Income $115,700

Presented here are the accounts of Hometown Decor Company for the year ended December 31, 2018.

Presented here are the accounts of Hometown Decor Company for the year ended December 31,2018.

Land	$13,000	Owner contribution. 2018	$28,000
Notes Payable	33,000	Accounts Payable	14,000
Property Tax Expense	2,800	Accounts Receivable	800
Hunt, Withdrawals	36,000	Advertising Expense	17,000
Rent Expense	14,000	Building	170,400
Salaries Expense	67,000	Cash	2,800
Salaries Payable	1,300	Equipment	17,000
Service Revenue	225,000	Insurance Expense	1,700
Office Supplies	8,000	Interest Expense	6,800
Hunt, Capital. Dec. 31, 2017	56,000

Requirements

1. Prepare Hometown Decor Company's income statement.
2. Prepare the statement of owner's equity.
3. Prepare the balance sheet.