The following equation shows the transactions of West Cleaning Service during May. The business is owned by Carol West.
| Assets | = | Liab. | + | Owner's Equity | ||||||||||||
| Cash | + | Accts. Rec. | + | Supp. | + | Equip. | = | Accts. Pay. | + | C. West, Capital | + | Rev. | − | Exp. | ||
| Balances, May 1 | 14,000 | + | 2,000 | + | 4,800 | + | 32,800 | = | 6,000 | + | 47,600 | + | 0 | − | 0 | |
| Paid for utilities | − 880 | + 880 | ||||||||||||||
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| New balances | 13,120 | + | 2,000 | + | 4,800 | + | 32,800 | = | 6,000 | + | 47,600 | + | 0 | − | 880 | |
| Sold services for cash | + 4,880 | + 4,880 | ||||||||||||||
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| New balances | 18,000 | + | 2,000 | + | 4,800 | + | 32,800 | = | 6,000 | + | 47,600 | + | 4,880 | − | 880 | |
| Paid a creditor | − 1,600 | − 1,600 | ||||||||||||||
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| New balances | 16,400 | + | 2,000 | + | 4,800 | + | 32,800 | = | 4,400 | + | 47,600 | + | 4,880 | − | 880 | |
| Sold services on credit | + 2,400 | + 2,400 | ||||||||||||||
| | | | | | | | | |||||||||
| New balances | 16,400 | + | 4,400 | + | 4,800 | + | 32,800 | = | 4,400 | + | 47,600 | + | 7,280 | − | 880 | |
| Paid salaries | − 8,400 | + 8,400 | ||||||||||||||
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| New balances | 8,000 | + | 4,400 | + | 4,800 | + | 32,800 | = | 4,400 | + | 47,600 | + | 7,280 | − | 9,280 | |
| Paid telephone bill | − 304 | + 304 | ||||||||||||||
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| New balances | 7,696 | + | 4,400 | + | 4,800 | + | 32,800 | = | 4,400 | + | 47,600 | + | 7,280 | − | 9,584 | |
| Withdrew cash for personal expenses | − 2,000 | − 2,000 | ||||||||||||||
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| New balances | 5,696 | + | 4,400 | + | 4,800 | + | 32,800 | = | 4,400 | + | 45,600 | + | 7,280 | − | 9,584 | |
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Prepare an income statement for the month of May 31, 2013. (Input
all amounts as positive values except net loss which should be
indicated with a minus sign. Omit the "$" sign in your response.)
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| WEST CLEANING SERVICE Income Statement Month Ended May 31, 2013 | ||||
| Revenue | ||||
| Fees income | $ | |||
| Expenses | ||||
| Utilities expense | $ | |||
| Salaries expense | ||||
| Telephone expense | ||||
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| Total Expenses | ||||
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| Net loss | $ | |||
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Prepare a statement of owner's equity for the month of May 31, 2013. (Input
all amounts as positive values except losses and decreases which should
be indicated with a minus sign. Omit the "$" sign in your response.)
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| WEST CLEANING SERVICE Statement of Owner's Equity Month Ended May 31, 2013 | ||||
| Carol West, Capital, May 1, 2013 | $ | |||
| Net loss for May | $ | |||
| Less: Withdrawal for May | ||||
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| Decrease in capital | ||||
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| Carol West, Capital, May 31, 2013 | $ | |||
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Prepare a balance sheet for May 31, 2013. (Be sure to list the accounts in order of their liquidity. Omit the "$" sign in your response.)
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| WEST CLEANING SERVICE Balance Sheet May 31, 2013 | ||
| Assets | ||
| Cash | $ | |
| Accounts receivable | ||
| Supplies | ||
| Equipment | ||
| | ||
| Total Assets | $ | |
| | ||
| Liabilities | ||
| Accounts payable | $ | |
| Owner's Equity | ||
| Carol West, Capital | ||
| | ||
| Total Liabilities and Owner's Equity | $ | |
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| Analyze: |
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Which amount was transferred from the statement of owner's equity? (Omit the "$" sign in your response.)
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| Owner's equity | $ |
