On January 1, Year 1, Charlotte Curtis started Curtis Company as a sole proprietorship with an initial investment of $80,000. During Year 1, the business earned $60,000 in cash revenue and paid $45,000 in cash expenses. During Year 1, Ms. Curtis withdrew $7,000 for her personal use. Required: Using the above information, prepare an income statement, a capital statement, and a balance sheet for the Curtis Company.
What will be an ideal response?
| Curtis Sole Proprietorship |
| Income Statement |
| For the Year Ended December 31, Year 1 |
| Revenue | $ 60,000 |
| Less: Expenses | 45,000 |
| Net Income | $ 15,000 |
| Curtis Sole Proprietorship |
| Capital Statement |
| For the Year Ended December 31, Year 1 |
| Beginning capital balance | $ - |
| Add: Investments by owner | 80,000 |
| Add: Net Income | 15,000 |
| ? | 95,000 |
| Less: Withdrawals by owner | (7,000) |
| Ending capital balance | $88,000 |
| Curtis Sole Proprietorship |
| Balance Sheet |
| For the Year Ended December 31, Year 1 |
| Assets | ? |
| Cash | $88,000 |
| ? | ? |
| Liabilities and Owner's Equity | ? |
| Curtis, Capital | $88,000 |
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