Operating expenses: Salary expense $20,300 Rent expense 9,000 Utilities expense 2,800 Supplies expense 525 Insurance expense 1,275 Miscellaneous expense 1,210 Total operating expenses 35,110 Net income $29,840 (b) Company Richard’s Catering Statement of Equity Owner’s For the Month Ended March 31 Richard Cook, capital, March 1, 2014 $150,000 Net income for the month $ 29,840 Less withdrawals 31,000 Decrease in equity 1,160 owner’s Richard Cook, capital, March 31 $148,840 (c) Company Richard’s Catering Balance Sheet March 31 Assets Liabilities Cash $ 23,840 Accounts payable $ 10,250 Accounts receivable 45,950 Prepaid insurance 3,000 Equity Owner’s Supplies 900 Richard Cook, capital 148,840 Land 85,400 Total liabilities and Total assets $159,090 equity $159,090 owner’s Challenging DIFFICULTY: Applying Bloom’s: ACCT.WARD.16.01-05 - 01-05 LEARNING OBJECTIVES: ACCT.ACBSP.APC.09 - Financial Statements ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Harris Designers began operations on April 1. The financial statements for Harris Designers are shown below for t month ended April 30, (the first month of operations). Determine the missing amounts for letters (a) through (o). Harris Designers Income Statement For the Month Ended April 30 Fees earned $27,000 Operating expenses: Wages expense $5,250 Rent expense (a) Supplies expense 4,600
Operating expenses: Salary expense $20,300 Rent expense 9,000 Utilities expense 2,800 Supplies expense 525 Insurance expense 1,275 Miscellaneous expense 1,210 Total operating expenses 35,110 Net income $29,840 (b) Richard’s Catering Company Statement of Owner’s Equity For the Month Ended March 31 Richard Cook, capital, March 1, 2014 $150,000 Net income for the month $ 29,840 Less withdrawals 31,000 Decrease in owner’s equity 1,160 Richard Cook, capital, March 31 $148,840 (c) Richard’s Catering Company Balance Sheet March 31 Assets Liabilities Cash $ 23,840 Accounts payable $ 10,250 Accounts receivable 45,950 Prepaid insurance 3,000 Owner’s Equity Supplies 900 Richard Cook, capital 148,840 Land 85,400 Total liabilities and Total assets $159,090 owner’s equity $159,090 DIFFICULTY: Challenging Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.01-05 - 01-05 ACCREDITING STANDARDS: ACCT.ACBSP.APC.09 - Financial Statements ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Harris Designers began operations on April 1. The financial statements for Harris Designers are shown below for t month ended April 30, (the first month of operations). Determine the missing amounts for letters (a) through (o). Harris Designers Income Statement For the Month Ended April 30 Fees earned $27,000 Operating expenses: Wages expense $5,250 Rent expense (a) Supplies expense 4,600