The following equation shows the transactions of West Cleaning Service during May. The business is owned by Carol West.

INSTRUCTIONS
Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for May 31, 2013. List the expenses in detail on the income statement.
Analyze:
In order to complete the balance sheet, which amount was transferred from the statement of owner's equity?

Transcribed Image Text:

Assets = Liab. + Owner's Equity Accts Accts. C. West, CashRec.Supp.Equip. - Equip. Pay. +CapitalRev. - Exp Balances, May 1 Paid for utilities New balances Sold services for cash New balances Paid a creditor New balances Sold services on credit New balances Paid salaries New balances Paid telephone bill New balances Withdrew cash for 14,000 2,0004,800+32,800 = 6,000 + 47,600 880 +880 880 13,120+2,000 + 4,800 +32,8006,00047,600 + +4,880 18,000 2,000+ 4,800+32,800 +4.880 6,000+47,6004,880 880 1,600 1,600 16,4002,000+4,800+32,8004,40047,6004,880 - 880 +2,400 +2,400 880 +8,400 - 9,280 +304 -9,584 16,4004,400+ 4,800+32,8004,40047,6007.280 8,400 8,0004,400 4,80032,8004,40047,6007,280 304 7,6964,4004,80032,800 4,40047,6007,280 2,000 personal expenses New balances 2,000 5,696 4,400+4,800 32,8004,400+ 45,600 7,280 - -9,584