Financial statements
Rory Kalur established Computers 4 Less on February 1, 2012. The effect of each transaction and the balances after each transaction for February are shown below.
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Assets
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= Liabilities +
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Owner's Equity
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Accounts
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Accounts
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Rory Kalur,
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Rory Kalur,
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Fees
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Salaries
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Rent
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Auto
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Supplies
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Cash
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+ Receivable
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+ Supplies
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Payable
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+ Capital
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- Drawing
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+ Earned
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- Expense
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- Expense
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- Expense
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- Expense
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- Expense
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a.
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+ 120,000
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+ 120,000
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b.
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+ 10,400
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+ 10,400
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| Bal. |
120,000
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10,400
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10,400
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120,000
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| c. |
+ 118,000
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+ 118,000
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| Bal. |
238,000
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10,400
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10,400
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120,000
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118,000
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| d. |
-32,000
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-32,000
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| Bal. |
206,000
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10,400
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10,400
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120,000
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118,000
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-32,000
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| e. |
-5,000
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-5000
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| Bal. |
$201,000
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10,400
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5,400
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120,000
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118,000
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-32,000
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| f. |
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+ 83,000
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+ 83,000
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| Bal. |
201,000
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83,000
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10,400
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5,400
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120,000
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201,000
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-32,000
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| g. |
-23,000
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-15,500
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-7,500
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| Bal. |
178,000
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83,000
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10,400
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5,400
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120,000
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201,000
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-32,000
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-15,500
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-7,500
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| h. |
-48,000
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-48,000
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| Bal. |
130,000
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83,000
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10,400
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5,400
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120,000
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201,000
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-48,000
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-32,000
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-15,500
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-7,500
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| i. |
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-6,100
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-6,100
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| Bal. |
130,000
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83,000
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4,300
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5,400
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120,000
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201,000
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-48,000
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-32,000
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-15,500
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-6,100
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-7,500
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| j. |
-30,000
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-30,000
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| Bal. |
100,000
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83,000
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$4,300
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$5,400
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120,000
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-30,000
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201,000
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-48,000
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-32,000
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-15,500
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-6,100
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-7,500
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Instructions
1. Prepare an income statement for the month ended February 29, 2012.
2. Prepare a statement of owner's equity for the month ended February 29, 2012.
3. Prepare a balance sheet as of February 29, 2012.
4. (Optional). Prepare a statement of cash flows for the month ending February 29, 2012.