Question
On Jan. 1, 2012, William Kelly started Kelly's Computer Service by investing $10,000. On Jan. 3, the business borrowed $10,000 from a creditor and executed
On Jan. 1, 2012, William Kelly started Kelly's Computer Service by investing $10,000. On Jan. 3, the business borrowed $10,000 from a creditor and executed a Note payable with the principal and interest to be due in one year. On Jan. 5, the business purchased $12,000 of equipment for cash. On Jan. 8, Kelly's rendered service to his first corporate client and earned $2,500 in cash. On Jan. 12, Kelly's incurred repair expense of $1,200 and promised to pay the repair contractor the following month. On Jan. 18, Kelly's rendered service to a new client in the amount of $6,000 "on account," (the client promised to pay the following month). At the end of January, Kelly took a withdrawal of $1,000. Please prepare an income statement for the month of January, a statement of owner's equity for the month of January, and a balance sheet at Jan. 31, 2012
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