Question

Use the following information (presented in random order) to complete an Income Statement and Balance Sheet. The name of the business is Future Tech, and the accounting period is the month of March, 2021. You will need to calculate the Capital amount for owner R. Lee. Remember: Add dollar signs and underlines in the appropriate places on both statements.
(Do it in an income statement too please)

Answer 1

The completion of the Income Statement and Balance Sheet for Future Tech. in the month of March 2021, is as follows:

Future Tech.

Income Statement

For the month ended March 31, 2021

Revenue:

Fees Earned               $4,500

Expenses:

Advertising    $800

Maintenance   790

Internet           600

Telephone      300   $2,490

Net income               $2,010

Future Tech.

Balance Sheet

As of March 31, 2021

Assets

Cash                              $600

Accounts Receivable   1,200

Supplies                          350

Office Equipment        3,400

Total assets              $5,550

Liabilities and Equity

Liabilities:

Accounts Payable       $250

Bank Loan                   1,800

Total liabilities         $2,050

Owner's equity       $3,500

Liabilities + Equity  $5,550

What is a balance sheet?

A balance sheet is a financial statement that shows the assets (what the entity owns) and the liabilities (what the entity owes outsiders) plus the equity (what the entity owes to the owner).

Thus, the capital amount for owner R. Lee is calculated to be $3,500 ($5,550 - $2,050).

Learn more about preparing a balance sheet at brainly.com/question/1113933

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