Strategic Managerial Accounting: Income Statement

Particulars

Dr

Cr

Particulars

Dr

Cr

Particulars

Dr

Cr

Cash a/c

20,000

Cash a/c

700

Accounts Payable a/c

8000

Common stock a/c

20,000

Service Revenue a/c

700

Cash a/c

8000

Particulars

Dr

Cr

Particulars

Dr

Cr

Particulars

Dr

Cr

Supplies a/c

1000

Cash a/c

1000

Cash a/c

1000

Accounts Payable a/c

1000

Accounts Receivables a/c

1000

Common stock a/c

1000

Particulars

Dr

Cr

Particulars

Dr

Cr

Particulars

Dr

Cr

Accounts Receivables a/c

3000

office rent a/c

900

advertising a/c

100

Service Revenue a/c

3000

cash a/c

900

cash a/c

100

Particulars

Dr

Cr

Particulars

Dr

Cr

drawings a/c

1500

cash a/c

100

cash a/c

1500

supplies a/c

100

Best Foot Forward Inc.

Income Statement

Month Ended September 30, 20XX

Revenues

Service revenue ($700 + $3,000)

 $  3,700.00

Expenses

Rent expense

 $              900.00

Advertising expense

 $              100.00

Total expenses

 $  1,000.00

Net income

 $  2,700.00

Best Foot Forward Inc.

Statement of Owner’s Equity

Month Ended September 30, 20XX

Particulars

Amount

Amount

Marilyn Crone, capital, August 31, 20XX

$7,700

Add: Investments by owner ($20,000 + $1,000)

21,000

Net income for the month

2,700

31,400

Less  Withdrawals by owner

(1,500)

Marilyn Crone, capital, September 30, 20XX

$29,900

Best Foot Forward Inc.

Balance Sheet

At September 30, 20XX

ASSETS

Amount

LIABILITIES

Amount

Cash

$14,500

Accounts payable

$1,000

Accounts receivable

3,500

Supplies

900

OWNER’S EQUITY

Land

12,000

Marilyn Crone, capital

29,900

Total liabilities and

Total assets

$30,900

   owner’s equity

$30,900