On January 1, 2019, Dance Training Co entered its second year of operations. Dance Training Co provides

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On January 1, 2019, Dance Training Co entered its second year of operations. Dance Training Co provides elite personal training courses to dancers who want to work on cruise ships. On December 31, 2020, Jordan Ryan, the owner, finalized the company’s records, which showed the following items.

Jordan Ryan, withdrawals Notes payable. Prepaid rent. Rent expense. Accounts payable. Accounts receivable. $ 10,200 $50,


The ending capital balance for one period is the beginning capital balance for the next period. There were no owner investments during the year ended December 31, 2020.


Required

Prepare an income statement and statement of changes in equity for the year ended December 31, 2020, and balance sheet at December 31, 2020, similar to Exhibits 1.8, 1.9, and 1.10.

Analysis Component: Analyze the balance sheet and calculate what percentage of the assets at December 31, 2020, were financed by (a) debt and (b) equity.


Exhibits 1.8, 1.9, and 1.10.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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