Accounts

December
1
Cash in bank
Shop equipment
Accounts payable
Capital
To set up investment
2

10

12

14

15

Furniture and fixtures

Accounts payable
Purchase of furniture

Dr

Cr
450,000.00
300,000.00
200,000.00
550,000.00

120,000.00
120,000.00

Shop supplies inventory

Cash in bank
Purchase of shop supplies

30,000.00

Prepaid rent
Prepaid advertising fee
Taxes and licenses
Cash in bank
Payment of various expenses

18,000.00
20,000.00
5,000.00

Accounts Receivable
Service income
Bill customers of services rendered
Cash in bank
Service income
Receipt of cash for services rendered
Accounts payable
Cash in bank
Payment of account

30,000.00

43,000.00

180,000.00
180,000.00

60,000.00
60,000.00

120,000.00
120,000.00

Cash in bank
Deferred service income
Received service fee in advance

60,000.00

Salaries expense
Cash in bank
Paid half-month worth salaries

18,000.00

60,000.00

Notes Receivable
50,000.00
Accounts Receivable
Received a 10% 30-day note from customer

18,000.00

50,000.00

20

25

28

30

31

Cash in bank
Service income
Received cash for services rendered

45,000.00

Drawing
Cash in bank
Withdraw cashfor personal use

15,000.00

Accounts payable
Cash in bank
Paid 20% of account on furniture

24,000.00

Cash in bank
Accounts Receivable
Receipt of customer's payment

60,000.00

Accounts receivable
Service income
Rendered services on account

15,000.00

Salaries expense
Salaries payable
Unpaid salaries

18,000.00

45,000.00

15,000.00

24,000.00

60,000.00

15,000.00

18,000.00

Depreciation expense
6,999.83
Accumulated depreciation - shop equipment
Accumulated depreciation - furniture&fixtures
Depreciation of equipment and furniture
Shop Supplies expense
Shop supplies inventory
Usage of shop supplies

26,000.00

Deferred service income

Service income

24,000.00

Rent expense
Advertising exense
Prepaid rent
Prepaid advertising
Amortization of prepaid expenses
Service income
Taxes and licenses

4,999.92
1,999.92

26,000.00

24,000.00
6,000.00
4,000.00
6,000.00
4,000.00

Salaries expense
Depreciation expense
Shop Supplies expense
Rent expense
Advertising exense
Capital

FP
FP
FP
FP

FP
FP

FP
FP

FP
FP
CI
FP

FP
CI

FP
CI

FP
FP

FP
FP

CI
FP

FP
FP

Shop equipment
Furniture and fixtures

Acquisition cost
Salvage value
300000
5
120000
5

FP
CI

FP
FP

FP
FP

FP
FP

FP
CI

CI
FP

CI
FP
FP

CI
FP

FP
CI
CI
CI
FP
FP

324,000.00
5,000.00

36,000.00
6.83
26,000.00
6,000.00
4,000.00
246,993.17

Life in years
5
5

Annual depreciation
Monthly depreciation
59999
4,999.92
23999
1,999.92

Princess Dress Shop

Statement of Comprehensive income
For the period ended December 31, 2015

Service income
Less: operating expenses
Taxes and licenses
Salaries expense
Depreciation expense
Shop Supplies expense
Rent expense
Advertising exense
Operating income

324000
5,000.00
36,000.00
6,999.83
26,000.00
6,000.00
4,000.00

83,999.83
240,000.17

Princess Dress Shop

Statement of Changes in equity
As of period ended December 31, 2015
Capital, beg

Investment
Withdrawal

550,000.00
15,000.00

Net operating income

240,000.17

Capital, end

775,000.17

ASSETS
Cash
Accts Receivable
Notes Receivable
Prepaid Rent
Prepaid advertising

Total Assets

LIABLITIES
Accoutn sPayable
Deferred Service Income
Total Liabilties
EQUITY
Capital

Total Liabilities and Equity

775,000.17

Taxes and licenses

Salaries expense
Depreciation expense
Shop Supplies expense
Rent expense
Advertising exense