BBAW2103

Financial Accounting

Topic 5: Completing the

Point in Point in
Time Period of Time Time

Income Statement
Statement of Owner’s Equity
Income Statement of
Beginning Cash Flows Ending Balance
Balance Sheet Sheet
Income Statement

FASTFORWARD
Income Statement
For the Month Ended 31 December 2019
Revenues:
Consulting revenue $ 5,800
Rental revenue 300
Total revenues $ 6,100
Less:
Expenses:
Rent expense 1,000
Salaries expense 1,400
Utilities expense 230
Total expenses 2,630
Net income $ 3,470
 Statement of Owner’s Equity
FASTFORWARD
Statement of Owner's Equity
For the Month Ended 31 December 2019
C. Taylor, Capital, 1 December 2019 $ -
Add: Investment by owner $ 30,000
Net income 3,470 33,470
33,470
Less: Withdrawals by owner 600
C. Taylor, Capital, 31 December 2019 $ 32,870

FASTFORWARD
Income Statement
For the Month Ended 31 December 2019
Revenues:
Consulting revenue $ 5,800
Rental revenue 300
Total revenues $ 6,100
Expenses:
Rent expense 1,000
Salaries expense 1,400
Utilities expense 230
Total expenses 2,630
Net income $ 3,470
 Balance Sheet
FASTFORWARD
Balance Sheet
FASTFORWARD
31 December 2019
Statement of Owner's Equity Fixed Assets:
For the Month Ended 31 December 2019 Equipment 26,000
C. Taylor, Capital, December 1, 2019 $ -
Add: Investment by owner $ 30,000 Current Assets:
Net income 3,470 33,470 Cash $ 3,950
33,470 Supplies 9,720
Less: Withdrawals by owner 600 Prepaid insurance 2,400
C. Taylor, Capital, 31 December 2019 $ 32,870 $ 16,070
Less: Current Liabilities:
Accounts payable $ 6,200
Unearned revenue 3,000
Working Capital 6,870
32,870
Financed by:
Owner's Equity
C. Taylor, Capital 32,870
$ 32,870
Illustration
FastForward
Trial Balance
31 December 2019
Debits Credits
Cash RM 3,950
Accounts receivable -
Supplies 9,720
Prepaid Insurance 2,400
Equipment 26,000
Accounts payable RM 6,200
Unearned consulting revenue 3,000
C. Taylor, Capital 30,000
C. Taylor, Withdrawals 600
Consulting revenue 5,800
Rental revenue 300
Salaries expense 1,400
Rent expense 1,000
Utilities expense 230
Total RM 45,300 RM 45,300
Closing Entries
Step 1

Step 2

Step 3

Step 4
Close Close Close Close
Revenue Expenses Revenue Drawing
Account Account Summary Account
Thank You