Below are the financial accounts of Metro Labs. The company has just completed its third year of
Question:
Below are the financial accounts of Metro Labs. The company has just completed its third year of operations ended November 30, 2011.
Accounts Payable ............$ 7,400
Accounts Receivable .......... 51,900
Cash .................. 115,750
Design Service Revenue .......... 300,000
Marketing Expense ............ 19,700
Office Rent Expense .......... 50,000
Owner’s Capital, November 30, 2010 .... 70,400
Salaries Expense ............. 96,000
Salaries Payable ............ 2,700
Supplies ............... 800
Supplies Expense ............ 6,350
Withdrawals .............. 40,000
Required
1. Prepare the income statements, statement of owner’s equity, and balance sheet for Metro Labs. There were no investments by the owner during the year.
2. Evaluate the company’s ability to meet its bills when they come due.
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...
Step by Step Answer:
1Financial statements prepared Metro Labs Income Statement For the Year Ended November 30 2011 R...View the full answer
