Question 1 What are the four major financial statements?

Question 2 Describe revenues and expenses.

Question 3 Explain assets, liabilities, and equity.

Question 4 (This is Part B to the question done in Week 1 lecture) Mary Johnson Closing Capital or Equity balance for May is $29,000.

This will become the beginning balance for June. During June, Mary Johnsons second month of operations, transactions occurred resulting in a $34,000 balance in the column Mary Johnson, Capital.

Calculate the profit or loss for June under each of the following independent situations:

1. Mary made no investments or withdrawals during June.

2. Mary invested $7,500 during June and made no withdrawals.

3. Mary withdrew a total of $2,500 during June and made no additional investments.

4. Mary invested $2,500 during June and made withdrawals of $1,500.