Question

make me a income statement, statement of owners equity and a balance sheet

Account Debit Credit
Cash 50,650.00
Accounts Receivable 2,975.00
Prepaid Rent 7,170.00
Prepaid Insurance 750.00
Vehicle 15,000.00
Office Supplies 750.00
Accumulated Depreciation 250.00
Notes Payable 25,000.00
Accounts Payable 155.00
Wages Payable 325.00
Owner's Capital 50,000.00
Owner Draws 1,000.00
Service Revenue 5,525.00
Rent Expense 1,195.00
Business License Expense 250.00
Telephone Expense 155.00
Repairs and Maintenance Expense 210.00
Advertising Expense 250.00
Wages Expense 650.00
Depreciation Expense 250.00

Answer 1

Let's break down the financial statements using the provided account balances. We will need to create an Income Statement, a Statement of Owner's Equity, and a Balance Sheet.

### 1. Income Statement

The Income Statement summarizes revenues and expenses to determine net income.

**Income Statement for the Period Ending [Date]**

| Description | Amount (USD) |
|----------------------------|-----------------|
| **Revenue** | |
| Service Revenue | $5,525.00 |
| **Total Revenue** | **$5,525.00** |
| | |
| **Expenses** | |
| Rent Expense | $1,195.00 |
| Business License Expense | $250.00 |
| Telephone Expense | $155.00 |
| Repairs and Maintenance Expense | $210.00 |
| Advertising Expense | $250.00 |
| Wages Expense | $650.00 |
| Depreciation Expense | $250.00 |
| **Total Expenses** | **$2,960.00** |
| | |
| **Net Income** | **$2,565.00** |

### 2. Statement of Owner's Equity

This statement summarizes changes in equity from net income and owner draws.

**Statement of Owner's Equity for the Period Ending [Date]**

| Description | Amount (USD) |
|----------------------------|-----------------|
| Owner's Capital, Beginning Balance | $50,000.00 |
| Add: Net Income | $2,565.00 |
| Less: Owner Draws | $1,000.00 |
| **Owner's Capital, Ending Balance** | **$51,565.00** |

### 3. Balance Sheet

The Balance Sheet presents the company's financial position at a specific point in time.

**Balance Sheet as of [Date]**

| Assets | Amount (USD) |
|---------------------------------------|-----------------|
| **Current Assets** | |
| Cash | $50,650.00 |
| Accounts Receivable | $2,975.00 |
| Prepaid Rent | $7,170.00 |
| Prepaid Insurance | $750.00 |
| Office Supplies | $750.00 |
| **Total Current Assets** | **$62,295.00** |
| | |
| **Non-Current Assets** | |
| Vehicle | $15,000.00 |
| Less: Accumulated Depreciation | ($250.00) |
| **Total Non-Current Assets** | **$14,750.00** |
| | |
| **Total Assets** | **$77,045.00** |
| | |
| Liabilities | Amount (USD) |
|---------------------------------------|-----------------|
| **Current Liabilities** | |
| Notes Payable | $25,000.00 |
| Accounts Payable | $155.00 |
| Wages Payable | $325.00 |
| **Total Current Liabilities** | **$25,480.00** |
| | |
| **Total Liabilities** | **$25,480.00** |
| | |
| **Owner's Equity** | |
| Owner's Capital | $51,565.00 |
| **Total Liabilities and Owner's Equity** | **$77,045.00** |

### Summary
- **Net Income**: $2,565.00
- **Ending Owner’s Equity**: $51,565.00
- **Total Assets**: $77,045.00
- **Total Liabilities and Owner's Equity**: $77,045.00

These statements are based on the account balances you provided, structured to reflect a typical financial reporting format.