Chapter 2, Problem 7PSB

Problem 2-7B Preparing an income statement, statement of owner's equity, and balance sheet P3

Victoria Rivera owns and manages a consulting firm called Prisek_: which began operations on July 1. On July 31. the company's records show the following selected accounts and amounts for the month of July.

Equipment	$ 12,000	Accounts receivable	.. $10,500
Salaries expense	9,000	V. Rivera, Withdrawals...	6,000
Consulting revenue	36,000	Office supplies	4,500
GiS'i	24,000	Rental revenue.........	lr500
Utilities expense	600	Advertising expense	lp200
Note payable	7,200	Prepaid insurance.......	3.000

Accounts payable....$3,900
Note receivable......7.500
Rent expense........6,000
Unearned revenue...900

Required

1. Prepare a July income statement for the business.
2. Prepare a July statement of owner's equity. The owner's capital account balance at July 1 was SO. and the owner invested $34_:800 cash in the company on July 2.
3. Prepare a July 31 balance sheet. Hint: Use the owner's capital account balance calculated in part 2.