Question
Problem 2 Preparing Financial Statements The accountant for Farley Corporation prepared the following list from the company's accounting records for the year ended December 31,
Problem 2 Preparing Financial Statements
The accountant for Farley Corporation prepared the following list from the company's accounting records for the year ended December 31, 20XX:
Service revenue | $18,500 |
| Cash | $ 3,000 |
Accounts receivable | 2,500 | A | Farley, Drawing | 5,000 |
Equipment | 4,200 | L | Supplies expense | 1,800 |
Accounts payable | 1,200 | L | Rent expenses | 3,400 |
Wages expense | 5,000 | L | Farley, Capital 1/1/20XX | 8,000 |
Office supplies | 800 | A | Insurance expense | 2,000 |
Required: Using the attached pages at the end of this document:
1. | Prepare an Income Statement for the year ended December 31, 20XX. |
2. | Prepare a Statement of Owners Equity for the year ended December 31, 20XX. |
3. | Prepare a Balance Sheet at December 31, 20XX. |
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