Prepare an Income Statement, Owner`s Equity Statement, and Balance Sheet.

Maltbee Lawn Service

Income Statement

For the four months ending August 31

Service Revenue 4 ,750 .00

Less : Expenses

Wages 2 ,100 .00

Supplies 350 .00 Lawn Mower Rental 400 .00

Lawn Mower Repair 300 .00

Trailer Depreciation 100 .00

NET INCOME 1 ,500 .00 ___________

Maltbee Lawn Service

Statement of Owner 's Equity

For the four months ending August 31

Maltbee Capital , May 1 400 .00

Add : Net Income 1 ,500 .00

Less : Drawings (460 .00

Maltbee Capital , August 31 1 ,440

.00

_________________

Maltbee Lawn Service

Balance Statement

As of Aug . 31

Assets

Current Assets

Cash 690 .00

Account Receivable 500 .00

Supplies Inventories 50 .00

Prepaid Lawn Mower Rental 200 .00 Trailer 300 .00

Less : Accumulated Depreciation 100 .00 200 .00 _______________

Liabilities Owner 's Equity

Liabilities

Salary 200 .00

Owner 's Equity

Maltbee , Capital , August 31 1 ,440 .00 ______________

Discussion

Question

Was Maltbee`s summer work successful

Answer

Yes he did . Maltbee 's summer business was successful

Reasons

He was able to earn 1 ,500 during the course of four months

During the course of the summer , he was able to withdraw 460

He was able to pay his father back for the original loan he made to start his business

Steps in Accounting Cycle

1 ) Identify the transaction

2 ) Analyze the transaction

3 ) Make the corresponding journal entry

4 ) Post to the ledger

5 ) Prepare a trial balance

6 ) Make adjusting entries

7 ) Prepare an adjusted trial balance

8 ) Prepare the financial statements

9 ) Journalize the closing entries

10 ) Prepare a post-closing trial balance

R E F E R E N C E

QuickMBA .com (2007 . The Accounting Cycle . Retrieved October 23 , 2007 from http /www .quickmba .com /accounting /fin /cycle...