Analyzing Business Transactions INSTRUCTIONS Analyze each transaction carefully. Prepare an income statement and a statement of owner's for the month. Prepare a balance sheet for August 31, 2016. List the expenses in detail income statement. Use the concepts 1. Prepare an inc Analyze: In order to complete the statement of owner's equity, which amount was transferred 2. How would y 3. What advice the income statement? Critical Thinking Problem 2.1 Financial Statements The following account balances are for Carl Nicholson, Certified Public Accountant, April 30, 2016. Cash Accounts Receivable Maintenance Expense Advertising Expense Fees Earned Carl Nicholson, Capital, April 1 Salaries Expense $30,000 12,000 Machinery Accounts Payable Carl Nicholson, Drawing 4,600 3,890 26,800 ? 13,000 21,000 13,200 6,800 BUSIN Interpreti 1. After exar surprise th substantia substanti To Reca You are J of the me always re INSTRUCTIONS Using the accounting equation form, determine the balance for Carl Nicholson, Capital, Apt office su 2016. Prepare an income statement for the month of April, a statement of owner's equity, and a yout ance sheet as of April 30, 2016. List the expenses on the income statement in alphabetical order chase o Analyze: What net change in owner's equity occurred during the month of April? Critical Thinking Problem 2.2 Inca Revie Accounting for a New Company James Mitchell opened a gym and fitness studio called Body Builders Fitness Center at the beg lines ning of November of the current year. It is now the end of December, and James is trying to de mine whether he made a profit during his first two months of operations. You offer to help him ask to see his accounting records. He shows you a shoe box and tells you that every piece of pa pertaining to the business is in that box. As you go through the material in the shoe box, you discover the following: a. A receipt from Clayton Properties for $8,000 for November's rent on the exercise studio. b. Bank deposit slips totaling $7,360 for money collected from customers who attended exercise classes. c. An invoice for $50,000 for exercise equipment. The first payment is not due until December d. A bill for $2,100 from the maintenance service that cleans the studio, James has not yet paid this bill e. A December 19 parking ticket for $200. James the Fitness Center on timm 1. A har 2. Is it reas operatio 3. Why sh the bus 4. How d- monthl record would

instructioks Critical Thinking Problem 2.1 INSTRUCTION Critical Thinking Problem 2.2 Accounting for a New Compony