The accountt balances from the December 31, 2019, trial balance for Haman Accounting Services a Haman Accounting
Trial Balance
December 31, 2019
Account Naame Debit Credit
Cash 6, 700
Accounts Receivable 2,700
Supplies 1,700
Prepaid Rent 19,000
Equipment 18,000
Accounts Payable 8,800
Erik Haman, Capital 24,500
Erik Haman, Drawing 3,700
Fees Income 24,000
Salaries Expense 3,700
Utilities Expense 1 ,800
Totals 57,300 57,300
1. Prepare an income statement for the Haman Accounting Services for the month ended December 31, 2019.
2. Prepare a statement of owner’s equity for Haman Accounting Services for the month ended December 31, 2019.
3. Prepare a balance sheet for Haman Accounting Services as of December 31, 2019.

Answer and Explanation:

The preparation of income statement is shown below:-

                          Haman accounting services

                                     Income Statement

               For the year ended December 31, 2019

Particulars                                        Amount

Fees income                                    $24,000

Total revenue                                  $24,000

Less: Operating expenses

Salaries expenses     ($3,700)

Utilities expenses      ($1,800)

Total operating expenses                ($5,500)

Net operating income                      $18,500

2. The Preparation of Statement of changes in owners equity is shown below:-

                          Haman accounting services

                 Statement of changes in owners equity

               For the year ended December 31, 2019

Particulars                                        Amount

Erik Haman' capital as on

1st Jan 2019                                      $24,500

Add: Earned net income                  $18,500

Total                                                   $43,000

Less: Erik Haman's Drawings           $3,700

Wilson' capital as on 31

December 2019                                 $39,300

3. The Preparation of balance sheet is prepared below:-

                          Haman accounting services

                                  Balance sheet

               For the year ended December 31, 2019

Particulars                                                           Amount

Assets

Current Assets

Cash                                                    $6,700

Accounts receivable                          $2,700

Supplies                                               $1,700

Prepaid Rent                                        $19,000

Total current assets                                               $30,100

Fixed (Long-Term) Assets    

Equipment                                              $18,000  

Total fixed assets                                                   $18,000

Total assets                                                              $48,100

Liabilities and Owner's Equity    

Current Liabilities

Accounts payable                                     $8,800

Total current liabilities                                             $8,800

Long-Term Liabilities

Total long-term liabilities                                          $0

Owner's Equity    

Erik Haman's Capital                                 $39,300

Total owner's equity                                                  $39,300

Total Liabilities and Owner's Equity                          $48,100

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