Based on the following trial balance for Sally's Salon, prepare an income statement, statement of owner's equity, and a balance sheet. Sally Crawford made no additional investments in the company during the year. Sally's SalonTrial BalanceDecember 31Cash$ 6,500?Accounts receivable475?Beauty supplies2,500?Beauty shop equipment17,000?Accounts payable?$ 745S. Crawford, Capital?21,155S. Crawford, Withdrawals36,000?Revenue earned?72,000Beauty supplies expense3,425?Rent expense6,000?Wages expense22,000?Totals$93,900$93,900
What will be an ideal response?
| Sally's Salon Income Statement For Year Ended December 31 | ||||
| Revenue earned……………... | ? | ? | ? | $72,000 |
| Expenses: | ? | ? | ? | ? |
| Beauty supplies expense…. | ? | $ 3,425 | ? | ? |
| Rent expense………………. | ? | 6,000 | ? | ? |
| Wages expense……………. | ? | 22,000 | ? | ? |
| Total expenses…………….. | ? | ? | ? | 31,425 |
| Net Income………………….. | ? | ? | ? | $40,575 |
| ? | Sally's Salon Statement of Owner's Equity For Year Ended December 31 | ||
| ? | S. Crawford, Capital, January 1……………………. | $21,155 | ? |
| ? | Plus: Net income………………………………………….. | 40,575 | ? |
| ? | ? | 61,730 | ? |
| ? | Less: Withdrawals by owner…………………………….. | (36,000) | ? |
| ? | S. Crawford, Capital, December 31………………. | $25,730 | ? |
| ? | ? | ? | ? |
Balance Sheet
At December 31
| Assets | ? | Liabilities | ? |
| Cash…………………….. | $ 6,500 | Accounts payable………… | $ 745 |
| Accounts receivable……. | 475 | ? | ? |
| Beauty supplies…………. | 2,500 | Equity | ? |
| Beauty shop equipment…. | 17,000 | S. Crawford, Capital…… | 25,730 |
| Total assets……………… | $26,475 | Total liabilities and equity. | $26,475 |
You might also like to view...
What administrative agency regulates pesticides, insecticides, fungicides and rodenticides?
a. The Food and Drug Administration b. The Occupational Safety and Health Administration c. The Environmental Protection Agency d. The Nuclear Regulatory Commission
The extent to which people perceive that they have control over events that occur is called
A. self monitoring. B. Machiavellianism. C. locus of control. D. the negotiator's degree of assertiveness.
If sales were overstated by recording a false credit sale at year end, where could you find the false "dangling debt"?
a. Inventory b. Cost of Goods Sold c. Bad Debt Expense d. Accounts Receivable
In the training model, a triggering event is
A) An organizational performance gap. B) A signal that training has been successful. C) A type of behavioral-based evaluation. D) Input into the development phase of training. E) None of the above.