Chapter 2
Linking Personal Accounting to Business Accounting
54
Review Exercise
See Appendix I for solutions.
T-account Worksheet
+
+
+
+
CASH
ACCOUNTS RECEIVABLE
PREPAID MAINTENANCE
EQUIPMENT
ACCOUNTS PAYABLE
UNEARNED REVENUE
BANK LOAN
JONES, CAPITAL
-
-
-
-
INCREASE
INCREASE
INCREASE
INCREASE
DECREASE
DECREASE
DECREASE
DECREASE
OWNER’S EQUITY
DECREASE
DECREASE
DECREASE
DECREASE
INCREASE
INCREASE
INCREASE
INCREASE
As at March 31, 2016
For the Month Ended March 31, 2016
Style House
Style House
Balance Sheet
Income Statement
ASSETS (what we own)
Total Assets
Total Liabilities
Owner’s Equity*
LIABILITIES (what we owe)
-
SERVICE REVENUE
+
DECREASE
INCREASE
LESS EXPENSES
+
+
+
+
+
+
INTEREST EXPENSE
ADVERTISING EXPENSE
RENT EXPENSE
SALARIES EXPENSE
TELEPHONE EXPENSE
TRAVEL EXPENSE
-
-
-
-
-
-
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
DECREASE
DECREASE
DECREASE
DECREASE
DECREASE
DECREASE
Total Revenue
Less: Total Expenses
Net Income (Loss)
-
-
-
-
+
+
+
+
DECREASE
JONES, DRAWINGS
INCREASE
-
+
*Ending Owner’s Equity Balance = Beginning Owner’s Equity Balance + Owner’s Contributions + Net Income (Loss) - Owner’sWithdrawals
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
