Exercise 1

We know the following items:


Equipment

                          $ 7 000

Supplies

                          $ 1 600

Utilities expense

                          $ 200

Retained earnings

                          $ 1 450

Service revenue

                          $ 4 700

Share capital – ordinary

                          ?

Accounts payable

                          $ 1 600

Cash

                          $ 8 050

Advertising expense

                          $ 250

Rent expense

                          $ 600

Accounts receivable

                          $ 1 400

Salaries and wages expense

                          $ 900


·         Prepare a balance sheet

·         Prepare a profit and loss statement (income statement)

·         Find out information about:

o   Net income

o   Revenue

o   Expenses

o   Assets

o   Liabilities

o   Equity

o   Total equity and liabilities