Prepare a statement of owners equity

Assignment Help Accounting Basics

Reference no: EM131017086

Everett Co. was organized on July 1, 2014. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.

EVERETT CO. Trial Balance September 30, 2014
	Unadjusted		Adjusted
	Dr.	Cr.	Dr.	Cr.
Cash	$ 8,620		$ 8,620
Accounts Receivable	10,417		11,553
Supplies	1,496		670
Prepaid Rent	2,236		1,233
Equipment	18,530		18,530
Accumulated Depreciation—Equipment		$ - 0 -		$ 748
Notes Payable		9,300		9,300
Accounts Payable		2,492		2,492
Salaries and Wages Payable		- 0 -		728
Interest Payable		- 0 -		93
Unearned Rent Revenue		1,937		1,029
Owner’s Capital		22,200		22,200
Owner’s Drawings	1,573		1,573
Service Revenue		17,427		18,563
Rent Revenue		1,360		2,268
Salaries and Wages Expense	8,500		9,228
Rent Expense	1,866		2,869
Depreciation Expense			748
Supplies Expense			826
Utilities Expense	1,478		1,478
Interest Expense			93
	$ 54,716	$ 54,716	$ 57,421	$ 57,421

Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Sept. 30

	(To record accrued revenue.)
Sept. 30

	(To record prepaid rent.)
Sept. 30

	(To record supplies used.)
Sept. 30

	(To record depreciation.)
Sept. 30

	(To record interest.)
Sept. 30

	(To record unearned rent revenue.)
Sept. 30

	(To record accrued salaries.)

Prepare an income statement for the 3 months ending September 30, 2014.

EVERETT CO. Income Statement For the Quarter Ended September 30, 2014
DrawingsExpensesInvestmentNet Income / (Loss)Owner’s Capital, January 1Owner’s Capital, September 30RevenuesTotal ExpensesTotal Revenues
		$

Drawings Expenses Investment Net Income / (Loss) Owner’s Capital, January 1 Owner’s Capital, September 30 Revenues Total Expenses Total Revenues
DrawingsExpensesInvestmentNet Income / (Loss)Owner’s Capital, January 1Owner’s Capital, September 30RevenuesTotal ExpensesTotal Revenues
	$
Drawings Expenses Investment Net Income / (Loss) Owner’s Capital, January 1 Owner’s Capital, September 30 Revenues Total Expenses Total Revenues
DrawingsExpensesInvestmentNet Income / (Loss)Owner’s Capital, January 1Owner’s Capital, September 30RevenuesTotal ExpensesTotal Revenues		$

Prepare a statement of owner's equity for the 3 months ending September 30, 2014. (List items that increase owner's equity first.)

EVERETT CO. Balance Sheet September 30, 2014
Assets
		$
	$
AddLess:
Current Assets Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Revenues Owner’s Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Owner’s Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Owner’s Equity		$
Liabilities and Owner’s Equity
Current AssetsLiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Owner’s Equity
		$
Current Assets Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Revenues Owner’s Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Owner’s Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Owner’s Equity
Current AssetsLiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Owner’s Equity

Current Assets Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Revenues Owner’s Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Owner’s Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Owner’s Equity		$

Prepare a balance sheet at September 30. (List assets in order of liquidity.)

If the note bears interest at 12%, how many months has it been outstanding?

Note has been outstanding for _________

month(s)

Reference no: EM131017086

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