FINANCIAL STATEMENTS 1. Prepare an income statement. 2. Prepare a statement of owner's equity. 3. Prepare a balance s

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FINANCIAL STATEMENTS
1. Prepare an income statement.
2. Prepare a statement of owner's
equity.
3. Prepare a balance sheet.
A work sheet for Megaffin's Repairs is shown below. No
additional investments were made by the owner during the month.
1. Prepare an income statement.
Assets:Drawing:Expenses:Liabilities:Revenue:
Accounts receivableCashDon Megaffin, capitalRepair feesSupplies
expenseWages expense
Assets:Drawing:Expenses:Liabilities:Revenue:
Accounts payableAccounts receivableDon Megaffin, drawingRepair
feesWages expenseWages payable
Accounts payableAdvertising expenseDelivery equipmentDon
Megaffin, capitalRepair fees
Accounts receivableCashPrepaid insuranceRent expenseRepair
fees
Accounts payableDon Megaffin, drawingRepair feesSuppliesSupplies
expense
Accounts receivableCashDon Megaffin, capitalPhone expenseRepair
fees
Accounts payableAccounts receivableInsurance expensePrepaid
insuranceRepair fees
Accounts receivableDelivery equipmentDon Megaffin, drawingGas
and oil expenseRepair fees
Accumulated depreciation-delivery equipmentCashDelivery
equipmentDepreciation expense-delivery equipmentWages payable
Accounts payableCashDon Megaffin, capitalMiscellaneous
expenseSupplies
Total assetsTotal expensesTotal liabilitiesTotal revenueTotal
shareholder's equity
Net incomeNet loss
2. Prepare a statement of owner's
equity.
Accounts receivableDon Megaffin, capital, January 1, 20--Net
income for JanuaryWithdrawals for January
Accounts receivableCashDon Megaffin, capital, January 31,
20--Net income for January
Less accounts payableLess cashLess Don Megaffin, capital,
January 31, 20--Less withdrawals for January
Decrease in capitalIncrease in capital
CashDon Megaffin, January 31, 20--Don Megaffin, January 1,
20--Withdrawals for January
3. Prepare a balance sheet.
Accounts payableCashDon Megaffin, drawingDon Megaffin,
capitalRepair fees
Accounts payableAccounts receivableAdvertising
expenseMiscellaneous expenseWages payable
Accounts payableDon Megaffin, drawingSuppliesSupplies
expenseWages payable
Insurance expenseDon Megaffin, capitalPrepaid insuranceWages
expenseWages payable
CashDelivery equipmentDon Megaffin, capitalSuppliesWages
payable
Less accounts receivableLess accumulated depreciationLess
depreciation expenseLess Don Megaffin, drawingLess gas and oil
expense
Accounts payableAccounts receivableAccumulated
depreciationCashDelivery equipment
Accounts receivableCashPrepaid insuranceWages expenseWages
payable
Accumulated depreciationCashDon Megaffin, capitalDon Megaffin,
drawingRepair fees