Eric Wood, CPA, was organized on January 1 as a proprietorship. The financial statements for Eric Wood, CPA are shown below for three months ended March 31.

Eric Wood, CPA

Income Statement

For the Three Months Ended March 31

1	Fees earned		$42,000.00
2	Expenses:
3	Salary expense	$9,735.00
4	Rent expense	5,200.00
5	Advertising expense	3,950.00
6	Utilities expense	3,225.00
7	Miscellaneous expense	4,000.00
8	Answering service expense	2,550.00
9	Supplies expense	4,000.00
10	Total expenses		28,000.00
11	Net income		$14,000.00

Eric Wood, CPA

Statement of Owners Equity

March 31

1	Eric Wood, capital, January 1		$0.00
2	Investment on January 1	$20,000.00
3	Net income for three months	14,000.00
4	Withdrawals	(5,000.00)
5	Increase in owners equity		31,000.00
6	Eric Wood, capital, March 31		$31,000.00

Eric Wood, CPA

Balance Sheet

For the Three Months Ended March 31

1	Assets
2	Land	$13,000.00
3	Cash	10,860.00
4	Accounts payable	2,670.00
5	Supplies	925.00
6	Total assets	$33,225.00
7	Owners Equity
8	Eric Wood, capital	$31,000.00
9	Liabilities
10	Accounts receivable	2,225.00
11	Total liabilities and owners equity	$33,225.00

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Eric Wood, CPA

Statement of Owners Equity

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Eric Wood, CPA

Balance Sheet

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