Statement Of Owner's Equity Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $18,000. Bought office supplies for $4,300: $1,900 in cash and $2,400 on account. Paid one-year insurance premium, $1,500. Earned revenues totaling $3,500: $1,400 in cash and $2,100 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,100. Paid office rent for the month, $800. Withdrew cash for personal use, $150. The effect of each transaction is shown in the individual accounts of the expanded accounting equation. Assets = Liabilities + Owner's Equity (Items Owned) (Amts. Owed) (Owner's Investment) (Earnings) Cash + Accounts Receivable + Office Supplies + Prepaid Insurance = Accounts Payable + J. Pembroke, Capital - J. Pembroke, Drawing + Revenues - Expenses Description a. 18,000 18,000 b. (1,900) 4,300 2,400 c. (1,500) 1,500 d. 1,400 2,100 3,500 Service fees e. (2,100) (2,100) f. (800) 800 Rent expense g. (150) 150 Bal. 12,950 + 2,100 + 4,300 + 1,500 = 300 + 18,000 - 150 + 3,500 - 800 The income statement for Jay Pembroke for the month ended April 30, 20-- is shown. Jay Pembroke Income Statement For Month Ended April 30, 20-- Revenues: Service fees $3,500 Expenses: Rent expense 800 Net income $2,700 Required: Use the information to prepare a statement of owner’s equity for Jay Pembroke for the month of April 20--. If an amount is zero, enter "0".

Statement Of Owner's Equity Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $18,000. Bought office supplies for $4,300: $1,900 in cash and $2,400 on account. Paid one-year insurance premium, $1,500. Earned revenues totaling $3,500: $1,400 in cash and $2,100 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,100. Paid office rent for the month, $800. Withdrew cash for personal use, $150. The effect of each transaction is shown in the individual accounts of the expanded accounting equation. Assets = Liabilities + Owner's Equity (Items Owned) (Amts. Owed) (Owner's Investment) (Earnings) Cash + Accounts Receivable + Office Supplies + Prepaid Insurance = Accounts Payable + J. Pembroke, Capital - J. Pembroke, Drawing + Revenues - Expenses Description a. 18,000 18,000 b. (1,900) 4,300 2,400 c. (1,500) 1,500 d. 1,400 2,100 3,500 Service fees e. (2,100) (2,100) f. (800) 800 Rent expense g. (150) 150 Bal. 12,950 + 2,100 + 4,300 + 1,500 = 300 + 18,000 - 150 + 3,500 - 800 The income statement for Jay Pembroke for the month ended April 30, 20-- is shown. Jay Pembroke Income Statement For Month Ended April 30, 20-- Revenues: Service fees $3,500 Expenses: Rent expense 800 Net income $2,700 Required: Use the information to prepare a statement of owner’s equity for Jay Pembroke for the month of April 20--. If an amount is zero, enter "0".

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 17PA: Prepare journal entries to record the following transactions for the month of November: A. on first...

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Statement Of Owner's Equity

Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.

Invested cash in business, $18,000.
Bought office supplies for $4,300: $1,900 in cash and $2,400 on account.
Paid one-year insurance premium, $1,500.
Earned revenues totaling $3,500: $1,400 in cash and $2,100 on account.
Paid cash on account to the company that supplied the office supplies in transaction (b), $2,100.
Paid office rent for the month, $800.
Withdrew cash for personal use, $150.

The effect of each transaction is shown in the individual accounts of the expanded accounting equation.

Assets	=	Liabilities	+	Owner's Equity
(Items Owned)		(Amts. Owed)		(Owner's Investment)		(Earnings)
	Cash	+	Accounts Receivable	+	Office Supplies	+	Prepaid Insurance	=	Accounts Payable	+	J. Pembroke, Capital	-	J. Pembroke, Drawing	+	Revenues	-	Expenses	Description
a.	18,000										18,000
b.	(1,900)				4,300				2,400
c.	(1,500)						1,500
d.	1,400		2,100												3,500			Service fees
e.	(2,100)								(2,100)
f.	(800)																800	Rent expense
g.	(150)												150
Bal.	12,950	+	2,100	+	4,300	+	1,500	=	300	+	18,000	-	150	+	3,500	-	800

The income statement for Jay Pembroke for the month ended April 30, 20-- is shown.

Jay Pembroke Income Statement For Month Ended April 30, 20--
Revenues:
Service fees	$3,500
Expenses:
Rent expense	800
Net income	$2,700

Required:

Use the information to prepare a statement of owner’s equity for Jay Pembroke for the month of April 20--. If an amount is zero, enter "0".

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