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The document provides accounting information for Carl Nicholson's certified public accounting business for the month of April 2016. It includes account balances, an income statement, statement of owner's equity, and balance sheet. It is determined that the net change in owner's equity for the month was a decrease of $1,490. This was calculated by taking the beginning capital balance of $51,290, adding net income of $5,310, and subtracting withdrawals of $6,800.

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1K views

Q8

The document provides accounting information for Carl Nicholson's certified public accounting business for the month of April 2016. It includes account balances, an income statement, statement of owner's equity, and balance sheet. It is determined that the net change in owner's equity for the month was a decrease of $1,490. This was calculated by taking the beginning capital balance of $51,290, adding net income of $5,310, and subtracting withdrawals of $6,800.

Uploaded by

Sundaramani Saran
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

9/8/2015

8.

AssignmentPrintView

Award: 6 out of 6.00 points

Critical Thinking Problem 2.1 Financial Statements


ThefollowingaccountbalancesareforCarlNicholson,CertifiedPublicAccountant,asofApril30,2016.

Cash
AccountsReceivable
MaintenanceExpense
AdvertisingExpense
FeesEarned
CarlNicholson,Capital,April1
SalariesExpense
Machinery
AccountsPayable
CarlNicholson,Drawing

30,000
12,000
4,600
3,890
26,800
?
13,000
21,000
13,200
6,800

DeterminethebalanceforCarlNicholson,Capital,April1,2016.

$
51,290
CarlNicholson,Capital,April1,2016

PrepareanincomestatementforthemonthofApril2016.

CARLNICHOLSON,CERTIFIEDPUBLICACCOUNTANT
IncomeStatement
MonthEndedApril30,2016
Revenue
Feesearned

26,800

Expenses
Salariesexpense

13,000

Maintenanceexpense

4,600

Advertisingexpense

3,890

Totalexpenses
Netincome

21,490

5,310

PrepareastatementofownersequityforthemonthofApril2016.

CARLNICHOLSON,CERTIFIEDPUBLICACCOUNTANT
StatementofOwnersEquity
MonthEndedApril30,2016
CarlNicholson,Capital,April1,2016

51,290

Decreaseincapital

(1,490)

CarlNicholson,Capital,April30,2016

49,800

NetincomeforApril
Less:WithdrawalsforApril

5,310
6,800

PrepareabalancesheetforCarlNicholson,CertifiedPublicAccountant,asofApril30,2016.

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CARLNICHOLSON,CERTIFIEDPUBLICACCOUNTANT
BalanceSheet
April30,2016
Assets

Liabilities

Cash

30,000

Equipment

21,000

Accountsreceivable

12,000

Totalassets

63,000

Accountspayable

13,200

CarlNicholson,Capital

49,800

TotalliabilitiesandOwner'sequity

Owner'sEquity

63,000

Analyze:
What net change in owners equity occurred during the month of April? (Negative amount should be
indicatedbyaminussign.)

$
(1,490)
Netchangeinowner'sequity

References
Worksheet

LearningObjective:0203
Analyzetheeffectsof
businesstransactionsona
firmsassets,liabilities,and
ownersequityandrecord
theseeffectsinaccounting
equationform.

CriticalThinking
Problem2.1
Financial
Statements

LearningObjective:0204
Prepareanincome
statement.

Critical Thinking Problem 2.1 Financial Statements


ThefollowingaccountbalancesareforCarlNicholson,CertifiedPublicAccountant,asofApril30,2016.

Cash
AccountsReceivable
MaintenanceExpense
AdvertisingExpense
FeesEarned
CarlNicholson,Capital,April1
SalariesExpense
Machinery
AccountsPayable
CarlNicholson,Drawing

30,000
12,000
4,600
3,890
26,800
?
13,000
21,000
13,200
6,800

DeterminethebalanceforCarlNicholson,Capital,April1,2016.

CarlNicholson,Capital,April1,2016
$
51,290

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9/8/2015

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PrepareanincomestatementforthemonthofApril2016.

CARLNICHOLSON,CERTIFIEDPUBLICACCOUNTANT
IncomeStatement
MonthEndedApril30,2016
Revenue
Feesearned

26,800

Expenses
Advertisingexpense

3,890

Maintenanceexpense

4,600

Salariesexpense

13,000

Totalexpenses
Netincome

21,490

5,310

PrepareastatementofownersequityforthemonthofApril2016.

CARLNICHOLSON,CERTIFIEDPUBLICACCOUNTANT
StatementofOwnersEquity
MonthEndedApril30,2016
CarlNicholson,Capital,April1,2016

NetincomeforApril

5,310

51,290

Less:WithdrawalsforApril

6,800

Decreaseincapital

(1,490)

CarlNicholson,Capital,April30,2016

49,800

PrepareabalancesheetforCarlNicholson,CertifiedPublicAccountant,asofApril30,2016.

CARLNICHOLSON,CERTIFIEDPUBLICACCOUNTANT
BalanceSheet
April30,2016
Assets

Liabilities

Cash

30,000

Accountsreceivable

12,000

Equipment

21,000

Accountspayable
Owner'sEquity

Totalassets

13,200

CarlNicholson,Capital

49,800

63,000

TotalliabilitiesandOwner'sequity

63,000

Analyze:
What net change in owners equity occurred during the month of April? (Negative amount should be
indicatedbyaminussign.)

Netchangeinowner'sequity
$
(1,490)

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Explanation:
DeterminethebalanceforCarlNicholson,Capital,April30,2016.
Assets
=
Liabilities
+
Owner'sEquity
Accounts
Accounts
Cash
+
+ Machinery =
+ C.NicholsonCapital C.NicholsonDrawing + Revenue Expenses
Receivable
Payable
$30,000 +
$12,000
+
$21,000
=
$13,200
+
?

$6,800
+ $26,800 $21,490
LetCarlNicholson,Capital=X.
SolvingforX:
$63,000(TotalAssets)=$13,200(AccountsPayable)$6,800(Drawing)+$26,800(Revenue)$21,490
(Expenses)+X

$63,000 = $11,710 +
X

$63,000 $11,710 = $11,710 $11,710 + X

$51,290 = X


CarlNicholson,Capital,April1,2016=$51,290

AdvertisingExpense
MaintenanceExpense
SalariesExpense

TotalExpenses

$ 3,890
4,600
13,000
$ 21,490

Analyze:
Thedecreaseinowner'sequitywas$1,490.

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