Ch. 4 - Completing the Accounting Cycle

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1. What is the name of this company and the time periods we are looking at?

2. Who is the owner of this company?

3. When did this company start?

4. What year did the company do better and why?

5. two questions or concerns you have with the items on the income statement

The Shannon Group Income Statement For the Years Ended December 31, 2009 and 2010 2009 2010 Revenue: Fees earned 150,000 160,000 Expenses: Salaries expense 50,000 75,000 Office supplies expense 3,000 2,500 Rent expense 12,000 12,000 Insurance expense 1,100 1,200 Auto supplies expense 500 450 Repairs expense 1,200 10,000 Net income 82,200 $ 58,850 The Shannon Group Statement of Owner's Equity For the Years Ended December 31, 2010 and 2009 2009 2010 Dana Shannon, capital, January 1, 20X2 18,200 Net income for year 82,200 58,850 Less withdrawals (74,000) (74,000) Capital Contributions 10,000 Dana Shannon, capital, December 31 S 18,200 $ 3,050The Shannon Group Balance Sheet As of December 31, 2010 and 2009 2009 2010 Assets Cash S 5,100 (50) Accounts receivable 1,200 3,000 Office supplies 900 350 Auto supplies 50 75 Office equipment 4,000 4,000 Automobiles 15,000 15,000 Total Assets 26,250 $ 22,375 Liabilities Accounts payable S 2,550 7,860 Salaries payable 5,500 11,465 Owner's Equity Dana Shannon, capital 18,200 3,050 Total liabilities and owner's equity 26,250 22,375