Question

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?

Answer 1

Answer:

land account dr

to cash