Presented below is a balance sheet for the Stan Howe Lawn Service at December 31, 2002.
STAN HOWE LAWN SERVICE
Balance Sheet
December 31, 2002
Assets Liabilities and Owner's Equity
Cash $12,000 Liabilities
Accounts receivable 7,000 Accounts payable $ 8,000
Supplies 9,000 Notes payable 15,000
Equipment 11,000 Owner's equity
Stan Howe, Capital 16,000
Total assets $39,000 Total liabilities & owner's equity $39,000
The following additional data are available for the year which began on January 1: All expenses (excluding supplies expense) total $6,000. Supplies on January 1, were $10,000 and $3,000 of supplies were purchased during the year. Net income for the year was $7,000 and drawings were $5,000.
Instructions
Determine the following: (Show all computations.)
1. Supplies used during the year.
2. Total expenses for the year.
3. Service revenues for the year.
4. Stan Howe's capital balance on January 1.
Problem-2
Prepare an income statement, an owner's equity statement, and a balance sheet for the dental practice of Carl Craft, DDS, from the items listed below for the month of September.
Carl Craft, Capital, September 1 $40,000
Accounts payable 7,000
Equipment 30,000
Service revenue 24,000
Carl Craft, Drawings 5,000
Dental supplies expense 3,500
Cash 6,000
Utilities expense 700
Dental supplies 2,800
Salaries expense 7,000
Accounts receivable 14,000
Rent expense 2,000