OBJ.3 s- mcome: PR 2-2A Following are the amounts of the assets and liabilities of Oriental Travel Agency at December 31, 2014, the end of the current year, and its revenue and expenses for the year. The Financial statements ups sblorilbote of oiilidail lo oits January 1, 2014, the beginning of the current year. capital of Sung Kim, owner, was $450,000 During the current year, Sung withdrew $25,000. 2002 Accounts payable Accounts receivable Cash Fees earned ET on $115,000 Rent expense Supplies Supplies expense Utilities expense ani79,000 Wages expensealg 490,000 $150,000 370,000 20,000 to bay sd lo 210,000 0 14,000 d o bwo ,100,000 300,000 hMiscellaneous expense 7,000 Land Instructions 1 Prepare an income statement for the current year ended December 31, 2014 2. Prepare a statement of owner's equity for the current year ended December 31, 2014. 4.What item appears on both the statement of owner's equity and the balance sheet? 3. Prepare a balance sheet as of December 31, 2014. Chapter 2 Accounting Equation, Financial Statements, and Financial Analysisb EX 2-10 Nature of transactions amsl toarla sonsls8 OBJ. 2 $7,200 Angela Howard operates her own catering service. Summary financial data for July are pre- sented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income. senq lequ Uabilities + Assets Owner's Equity Accounts Angela Howard, Angela Howard, Capital 100,000 Fees Cash +Supplies + Land Payable + 12,000 +Earned - Expenses Drawing Bal 30,000 2,000 80,000 1. +33,000 +33,000 of ebrary 28 d Mah 31,201 2. -20,000 +20.000 -24,000 tto 3. ems e imon c-24,000 box ni boinsg b 4. no gg bloow i000 d vitn t1,000 5. -3,000 mdsa -3,000 6. -6,000 -6,000 7. -1,800 -1,800 o to -3,000 Bal. bns dio 10,000 1,200 100,000 7,000 100,000 33,000 -25,800 woll a. Describe each transaction. b. What is the amount of the net decrease in cash during the month? c. What is the amount of the net increase in owner's equity during the month? d. What is the amount of the net income for the month? How much of the net income for the month was retained in the business? dAto JEX 2-11 e. Net income and own er's withdrawals OBJ. 1