Net Income and Change in Owner's Equity Wilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. The trial balance showing balances for the month of May are shown. Kohl's Home Repair Trial Balance May 31, 20-- Account Debit Balance Credit Balance Cash 21,805 Accounts Receivable 2,700 Office Supplies 160 Prepaid Insurance 1,100 Equipment 8,200 Van 6,000 Accounts Payable 4,400 Wilhelm Kohl, Capital 25,000 Wilhelm Kohl, Drawing 2,900 Service Fees 15,500 Rent Expense 850 Wages Expense 800 Phone Expense 230 Gas and Oil Expense 155 Totals 44,900 44,900 Required: Determine the following information. Use the format provided below. 1. a. Total revenue for the month b. Total expenses for the month c. Net income for the month 2. a. Wilhelm Kohl's original investment in the business + Net income for the month - Owner's drawing Increase (decrease) in capital = Ending owner's equity b. End of month accounting equation: Assets = Liabilities + Owner's Equity = +
Net Income and Change in Owner's Equity Wilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. The trial balance showing balances for the month of May are shown. Kohl's Home Repair Trial Balance May 31, 20-- Account Debit Balance Credit Balance Cash 21,805 Accounts Receivable 2,700 Office Supplies 160 Prepaid Insurance 1,100 Equipment 8,200 Van 6,000 Accounts Payable 4,400 Wilhelm Kohl, Capital 25,000 Wilhelm Kohl, Drawing 2,900 Service Fees 15,500 Rent Expense 850 Wages Expense 800 Phone Expense 230 Gas and Oil Expense 155 Totals 44,900 44,900 Required: Determine the following information. Use the format provided below. 1. a. Total revenue for the month b. Total expenses for the month c. Net income for the month 2. a. Wilhelm Kohl's original investment in the business + Net income for the month - Owner's drawing Increase (decrease) in capital = Ending owner's equity b. End of month accounting equation: Assets = Liabilities + Owner's Equity = +
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 7SEB: STATEMENT OF OWNERS EQUITY REPORTING NET LOSS Based on the information provided in Exercise 2-6B,...
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Net Income and Change in Owner's Equity
Wilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. The
Kohl's Home Repair Trial Balance May 31, 20-- |
||
Account | Debit Balance |
Credit Balance |
Cash | 21,805 | |
2,700 | ||
Office Supplies | 160 | |
Prepaid Insurance | 1,100 | |
Equipment | 8,200 | |
Van | 6,000 | |
Accounts Payable | 4,400 | |
Wilhelm Kohl, Capital | 25,000 | |
Wilhelm Kohl, Drawing | 2,900 | |
Service Fees | 15,500 | |
Rent Expense | 850 | |
Wages Expense | 800 | |
Phone Expense | 230 | |
Gas and Oil Expense | 155 | |
Totals | 44,900 | 44,900 |
Required:
Determine the following information. Use the format provided below.
1. | a. Total revenue for the month | ||
b. Total expenses for the month | |||
c. Net income for the month | |||
2. | a. Wilhelm Kohl's original investment in the business | ||
+ Net income for the month | |||
- Owner's drawing | |||
Increase (decrease) in capital | |||
= Ending owner's equity |
b. End of month
Assets | = | Liabilities | + | Owner's Equity |
= | + |
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