CP 12-1

You are given the following data for the proprietorship of R. Black.

R. Black Proprietorship

Trial Balance December 31, 2019

Debit Credit

Cash $10,000

Accounts receivable 20,000

Merchandise inventory 30,000

Accounts payable $ 25.000

R. Black, capital 5,000

R. Black, withdrawals 7,000

Sales 166,000

Cost of goods sold 100,000

Rent expense 24,000

Income taxes expenses 5,000

Totals $196,000 $196,000

Black contributed $5,000 capital during the year.

Required:

1. Prepare an income statement for the year.

2. Prepare a statement of proprietors capital for the year in the following format:

R. Black Proprietorship

Statement of Proprietors Capital

For the Year Ended December 31, 2019

Balance at Jan.1,2019 $

Contributions

Net income

Withdrawals

Balance at Dec.31,2019 $

3.Prepare a balance sheet at December 31,2019.

4. Prepare closing entries at yearend.