Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018.
Owner investment,2018
$ 32,000
Land
$ 7,000
Accounts payable
$ 14,000
Notes payable
$ 30,000
Accounts receivable
$ 1,700
Property tax expense
$ 2,900
Advertising expense
$ 17,000
KPMS, drawing
$ 32,000
Building
$ 137,900
Rent expense
$ 13,000
Cash
$ 6,000
Salary expense
$ 69,000
Equipment
$ 17,000
Salary payable
$ 500
Insurance Expense
$ 2,000
Service revenue
$ 192,000
Interest Expense
$ 6,000
Supplies
$ 8,000
KPMS, Capital 12/31/2018
$ 51,000
Requirements:
Prepare KPMS Delivery’s income statement. (3 Marks)
Prepare the statement of owner’s equity. (3 Marks)
Prepare the balance sheet. (3 Marks)
Answer these questions about the company:(1 Marks)
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves
into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the owner’s equity in the business at the end of
the year?
Answers
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Answer:
land account dr
to cash
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