Help with income statement, owners equity and balance sheet?

Question

please help me complete each of the 3 documents for Jonco for the month of january using the following figures:

accounts receivable.....$2400

accounts payable........10000

jon bast capital.............5000

jon bast drawing.............250

cash............................6000

prepaid insurance..........1500

rent expense..................700

service revenue..............5250

supplies..........................450

telephone expense...........100

truck.............................6750

utilities expense...............350

wages expense..............1750

Answer 1

If no info for adjustments is given, just make use of given data and answer the question.

Income statement

service revenue..............5250

Less:

Operating expenses

rent expense..................700

telephone expense...........100

utilities expense...............350

wages expense..............1750

Net income $2,350

Statement of Owner's Equity

jon bast capital.............5000

jon bast drawing............(250)

Net income $2,350

Ending balance $7,100

Balance Sheet

Non-current assets

truck.............................6750

Current assets

cash............................6000

accounts receivable.....$2400

prepaid insurance..........1500

supplies..........................450

Total assets $17,100

Current liabilities

accounts payable........10000

Owner's equity $7,100

Total liabs & owner's equity $17,100

Answer 2

Okay, the items on the income statement are the expenses and the income.  The only catch here is the prepaid insurance.  You have to allocate it.  That portion which applies to the current month is an expense the rest is an asset.  The other gotcha is the truck because it is a long term asset subject to depreciation.

On completing the income statement the profit or loss is transferred to owners equity.  The drawing amount is also an owners equity item.

I'll leave the rest to you.

Jerry-the-bookkeeper