Answer:
a. Income Statement
<u>Revenues:</u>
Consulting fees earned $15,040
Total revenues $15,040
<u>Expenses:</u>
Salaries expenses $8,090
Rent $4,350
Telephone $880
Miscellaneous <u>$880</u>
Total Expenses <u>$14,200</u>
Net Income <u>$840</u>
b. Statement of owners equity
Particulars Amount Amount
Add: Investment by owner $85,050
Net Income $840
Capital, October 1 $85,890
Less: Withdrawal by owner <u>$3,070</u>
Capital, October 31 <u>$82,820</u>
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c. Balance sheet
Assets Liabilities
Cash $7,950 Accounts payable $9,430
Accounts receivable $15,040
Office supplies $4,200
Land $46,010 Owner's equity $82,820
Office equipment <u>$19,060</u> <u> </u>
Total assets <u>$92,250</u> Total liabilities & Equity <u>$92,250</u>