Asked by Leslie Katie on Apr 24, 2024
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The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below. There were no additional investments or withdrawals by J. Trendsetter during the year.? Accounts payable $12,000 J. Trendsetter, capital (January 1) $10,000 Accounts receivable 14,000 Supplies 1,000 Cash 18,000 Income taxes expense 1,300 Computer equipment 21,000 Utilities expense 8,000 Fees earned 78,000 Wages expense 25,000 Rent expense 10,000 Supplies expense 1,700\begin{array} { l r l r } \text { Accounts payable } & \$ 12,000 & \text { J. Trendsetter, capital (January 1) } & \$ 10,000 \\\text { Accounts receivable } & 14,000 & \text { Supplies } & 1,000 \\\text { Cash } & 18,000 & \text { Income taxes expense } & 1,300 \\\text { Computer equipment } & 21,000 & \text { Utilities expense } & 8,000 \\\text { Fees earned } & 78,000 & \text { Wages expense } & 25,000 \\\text { Rent expense } & 10,000 & \text { Supplies expense } & 1,700\end{array} Accounts payable Accounts receivable Cash Computer equipment Fees earned Rent expense $12,00014,00018,00021,00078,00010,000 J. Trendsetter, capital (January 1) Supplies Income taxes expense Utilities expense Wages expense Supplies expense $10,0001,0001,3008,00025,0001,700 Prepare an income statement, statement of owner's equity, and a balance sheet as of December 31.?
Income Statement
A financial statement that shows a company's revenues and expenses over a specific period, leading to net profit or loss.
Balance Sheet
A financial statement that provides a snapshot of a company’s financial position, listing assets, liabilities, and owner’s equity at a specific point in time.
- Comprehend and elucidate the elements and objectives of fundamental financial statements, including the income statement, statement of owner's equity, balance sheet, and statement of cash flows.
- Develop an income statement and determine the net profit or net loss for a specified period.
- Construct a statement that represents the variations in owner's equity over a period.
Verified Answer
TN
Learning Objectives
- Comprehend and elucidate the elements and objectives of fundamental financial statements, including the income statement, statement of owner's equity, balance sheet, and statement of cash flows.
- Develop an income statement and determine the net profit or net loss for a specified period.
- Construct a statement that represents the variations in owner's equity over a period.
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