Preparing financial statements and evaluating business performance

Preparing financial statements and evaluating business performance.

Accent photography works weddings and prom-like photography.

The balance of capital as of December 31, 2010 . At December 31, 2011, the business’s

accounting records show these balances:

Insurance expense …………….8,000 Accounts receivable 10,000

Cash ………….31,000 Note payable 12,000

Accounts payable……………..6,000 Owners Equity ?

Advertising expense…………1,000 Salary expense 27,000

Service revenue ……… 81,000 Equipment 60,000

Owner’s withdrawals ………15,000 Owner’s Investment 33,000

Requirement:

Prepare the following finamcial statement for Accent photography for the year

ended December 31, 2011:

a. income statements

b. Statement of owner’s equity

c. Balance Sheet

Haupt Consulting began operations and completed the first part of transactions in the first half of December:

December 2 Received 10,000 cash from owner Carl Haupt

Paid monthly office rent 500.00

Paid cash for Dell computer 2,000.00. This equip. expected to remain in service 5 years.

Purchased office furniture on account 3,600. should last 5 years.

Purchased supplies on account 300.00

Performed consulting service on a client on account, 1,700.

Paid utility expenses 200.00

Performed service for a client and received cash of 800.00