Appendix I
Review Exercise Solutions
387
Complete the income statement, statement of owner’s equity and balance sheet for this exercise.
Style House
Income Statement
For the Month Ended March 31, 2016
Revenue
Service Revenue
$8,400
Expenses
Advertising Expense
$300
Interest Expense
50
Rent Expense
2,000
Salaries Expense
4,000
Telephone Expense
250
Travel Expense
500
Total Expenses
7,100
Net Income
$1,300
Style House
Statement of Owner’s Equity
For the Month Ended March 31, 2016
Jones, Capital, March 1, 2016
$10,000
Add: Net Income
1,300
Less: Jones, Drawings
3,000
Jones, Capital, March 31, 2016
$8,300
Style House
Balance Sheet
As at March 31, 2016
Assets
Liabilities
Cash
$4,117 Accounts Payable
$5,050
Accounts Receivable
400 Unearned Revenue
100
Prepaid Maintenance
600 Bank Loan
11,667
Equipment
20,000
Total Liabilities
16,817
Owner’s Equity
Jones, Capital
8,300
Total Assets
$25,117
Total Liabilities and Owner's Equity
$25,117
