Accounting Principles Assignment Chapte

P1-9A
Bennett's Home Renovations
Income Statement
Month Ended December 31, 2011

Revenue

Service Revenue

$ 154,700.00

Expenses

Interest

1,190.00

Supplies

2,975.00

Salaries

87,430.00

Vehicle Maintenance 19,545.00

Total Expenses

111,140.00
Profit

$ 43,560.00

Bennett's Home Renovations
Statement of Owner's Equity
Month Ended December 31, 2011

J. Bennett Capital, January 2011

$ 54,350.00
Add:
Investments

-

Profit

43,560.00

97,910.00
Less:
Drawings

44,800.00
J. Bennett Capital, January 2011

$ 53,110.00

Bennett's Home Renovations
Balance Sheet
December 31, 2011

Assets

Cash

$ 7,700.00

Accounts Receivable

10,080.00

Supplies

595.00

Equipment

71,400.00

Insurance

3,375.00

Total Assets

$ 93,150.00

Liabilities and Owners Equity

Liabilities

Accounts Payable

$ 40,040.00

Owner's Equity

J. Bennett Capital

53,110.00

Total Liabilities and owner's equity $ 93,150.00

P1-9A: Taking It Further
It is important to prepare the Income Statement first as the profit is used when calculating the Owner’s Equity and then the capital from the owners equity is used to calculate the liabilities for the Balance sheet.

P2-3A

P2-3A: Taking it Further
The journal entry is just a starting point in the recording process. Once the month has been complete this will roll into the General Ledger that will then build to the trail balance then income statement among the other financial statements. This will allow the company to have a clear view of their financial position throughout the year and by year end. Even though Amin will not find the Journal useful the further reporting will be clear.

P2-9A

P2-9A: Taking It Further
The purchase of Repair