Describe the effects of business transactions

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Reference no: EM132100415

Question: Describe the effects of business transactions on the basic accounting elements: assets, liabilities, owners' equity, revenues, and expenses.

Describe the language, concepts and use of financial accounts and reports.

Identify and use the sources of accounting data and information.

Identify the users of financial accounting information and the types of decisions made by users.

From the following information, please prepare an Income Statement, Statement of Owner's Equity, and Balance Sheet for the month of May of the current year.

Cash

$12,000

 

Accounts Receivable

16,000

 

Supplies

350

 

Equipment

16,500

 

Notes Payable

 

$13,000

Accounts Payable

 

12,000

S. Jones, Capital

 

18,000

S. Jones, Drawing

550

 

Service Revenue

 

6,000

Telephone Expense

350

 

Rent Expense

1,100

 

Advertising Expense

2,150

 

 

$49,000

$49,000

Reference no: EM132100415

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