Question
Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts
Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December.
Cash | $ 8,600 | A. Lopez, Capital | $ 12,800 |
---|---|---|---|
Accounts receivable | 3,800 | A. Lopez, Withdrawals | 2,300 |
Notes receivable | 2,800 | Consulting revenue | 13,500 |
Office supplies | 1,800 | Rental revenue | 800 |
Prepaid insurance | 1,300 | Salaries expense | 3,300 |
Equipment | 5,500 | Rent expense | 2,300 |
Accounts payable | 2,260 | Advertising expense | 460 |
Notes payable | 2,700 | Utilities expense | 260 |
Unearned revenue | 360 |
Required: 1. Prepare a December income statement for the business. 2. Prepare a December statement of owner's equity. The A. Lopez, Capital account balance at December 1 was $0, and the owner invested $12,800 cash in the company on December 2. 3. Prepare a December 31 balance sheet. Hint: Use the A. Lopez, Capital account balance calculated in part 2.
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