FINANCIAL STATEMENTS PREPARATION

PROBLEM: The following are the accounts included in the Trial Balance of Maria Jasmine's business (named Maria Jasmine Park Place) as of Dec. 31, 2005.

Cash - 241,000

Office supplies expense - 8,000

Rent expense - 180,000

Leasehold Improvements - 504,000

Furniture & Fixtures - 30,000

14% Notes Payable - 400,000

Maria Jasmine, Capital - 144,500

Parking Fees Income - 854,800

Accounts receivable - 176,000

Prepaid insurance - 4,800

Accumulated Depreciation - Furniture & Fixtures - 3,000

Accounts payable - 35,000

Salaries expense - 186,000

Utilities expense - 96,000

Interest income - 14,000

Advances from Tenants - 15,000

Maria Jasmine, withdrawals - 85,500

Accumulated depreciation - Leasehold Improvements - 42,000

Allowance for bad debts - 3,000

REQUIRED: Prepare the

1. Income Statement

2. Statement of Changes in Owner's Equity

3. Balance Sheet

IMPORTANT: MAKE SURE THAT THE BALANCE SHEET'S TOTAL ASSETS IS EQUAL TO TOTAL LIABILITIES + OWNER'S EQUITY

FINANCIAL STATEMENTS PREPARATION The following are the accounts included in the Trial Balance of Maria Jasmine's business (named Maria Jasmine Park Place) as of Dec. 31, 2005: \begin{tabular}{l|r|} & \\ & 241,000 \\ \hline Cash & 8,000 \\ \hline Office supplies expense & 180,000 \\ \hline Rent expense & 504,000 \\ \hline Leasehold Improvements & 30,000 \\ \hline Furniture \& Fixtures & 400,000 \\ \hline 14\% Notes Payable & 144,500 \\ \hline Maria Jasmine, capital & 854,800 \\ \hline Parking Fees Income & 176,000 \\ \hline Accounts receivable & 4,800 \\ \hline Prepaid insurance & 3,000 \\ \hline Accumulated depreciation- furniture \& fixtures & 35,000 \\ \hline Accounts payable & 186,000 \\ \hline Salaries expense & 96,000 \\ \hline Utilities expense & 14,000 \\ \hline Interest income & 15,000 \\ \hline Advances from Tenants & 85,500 \\ \hline Maria Jasmine, withdrawals & 42,000 \\ \hline Accumulated depreciation -Leasehold Improvemen & 3,000 \\ \hline Allowance for bad debts & \\ \hline & \\ \hline Requirement: & \\ \hline 1. Prepare the Income Statement & \\ \hline 2. Prepare the Balance Sheet & \\ \hline 3. Prepare the Statement of Changes in Owner's Equity \\ \hline \end{tabular}