Question
1. Financial Accounting (financial statement preparation problem A. Joe established his law firm on January 2, 2019. Deposited $20,000 in his business checking account. This
1. Financial Accounting (financial statement preparation problem
A. Joe established his law firm on January 2, 2019. Deposited $20,000 in his business checking account. This is considered his starting capital.
B. January 3, Purchased a computer for $3,000. Paid $1500 and signed a note for the balance. This computer is supposed to be depreciated on straight line basis for 60-month straight line basis.
C. January 5, purchased $2,400 office supplies which he used only 1/3 by the end of the first quarter 2019
D. Billed a client for $2,500 for his services
E. Hired a part time assistant for $1,000 a month
F. Received $3,000 cash from a client
G. He withdrew $2,000 for his personal use
Required: Establish T-accounts (2pts), prepare trial balance(2pts), income statement(2pts), owners equity(2pts) statement and the balance sheet(2pts) for the first quarter of 2020 ending on March 31, 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started