Financial Accounting

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Amount
Issued common shares for cash			5
Borrowed cash from the bank			7
Paid cash for a used truck	6,000
	4	Paid cash for a one–year truck insurance policy effective August 1 (record as an asset)		60
Collected fees in cash from a client for work to be performed at a later date		5,000
Billed a client for services performed today	1,000
Paid cash for supplies purchased and used today			200
	12	Purchased supplies on credit (record as an asset)	100
	15	Collected part of the amount billed August 7	400
	16	Paid cash for advertising in The News during the first two weeks of August
Paid in cash part of the amount owing for supplies purchased on August 12		80
	25	Paid the following August expenses in cash:
	Rent	700
	Salaries	2,000
	Telephone
		Truck	500
	28	Called clients about payment of the balances owing from August 7
	29	Billed a client for services performed today, including $1,500 related to cash received August 5
Transferred August’s prepaid expenses to insurance expense
Counted supplies and found this amount still on hand (recorded the amount used as an expense).

Income Statement	Balance Sheet
	For the Month Ended August 31, 2019	At August 31, 2019
Revenue
Fees
Acct. rec.
Expenses	Ppd. exp.
Advertising	Unused supp.
Insurance
Total assets
Supplies
Bank loan
Truck operating	Acct. pay.
Total expenses	Unearn. rev.
	Net income (loss)	Total liabilities
Stockholders’ Equity
Statement of Changes in Equity		Common stock
Retained earn.
Total S/H equity
Retained earnings	Total equity	Total liab. and equity
Opening balance
Stock issued
Ending balance

Amount
Issued common shares for cash			5
Borrowed cash from the bank			7
Paid cash for a used truck	6,000
	4	Paid cash for a one–year truck insurance policy effective August 1 (record as an asset)		60
Collected fees in cash from a client for work to be performed at a later date		5,000
Billed a client for services performed today	1,000
Paid cash for supplies purchased and used today			200
	12	Purchased supplies on credit (record as an asset)	100
	15	Collected part of the amount billed August 7	400
	16	Paid cash for advertising in The News during the first two weeks of August
Paid in cash part of the amount owing for supplies purchased on August 12		80
	25	Paid the following August expenses in cash:
	Rent	700
	Salaries	2,000
	Telephone
		Truck	500
	28	Called clients about payment of the balances owing from August 7
	29	Billed a client for services performed today, including $1,500 related to cash received August 5
Transferred August’s prepaid expenses to insurance expense
Counted supplies and found this amount still on hand (recorded the amount used as an expense).

Income Statement	Balance Sheet
	For the Month Ended August 31, 2019	At August 31, 2019
Revenue
Fees
Acct. rec.
Expenses	Ppd. exp.
Advertising	Unused supp.
Insurance
Total assets
Supplies
Bank loan
Truck operating	Acct. pay.
Total expenses	Unearn. rev.
	Net income (loss)	Total liabilities
Stockholders’ Equity
Statement of Changes in Equity		Common stock
Retained earn.
Total S/H equity
Retained earnings	Total equity	Total liab. and equity
Opening balance
Stock issued
Ending balance

Amount
Issued common shares for cash			5
Borrowed cash from the bank			7
Paid cash for a used truck	6,000
	4	Paid cash for a one–year truck insurance policy effective August 1 (record as an asset)		60
Collected fees in cash from a client for work to be performed at a later date		5,000
Billed a client for services performed today	1,000
Paid cash for supplies purchased and used today			200
	12	Purchased supplies on credit (record as an asset)	100
	15	Collected part of the amount billed August 7	400
	16	Paid cash for advertising in The News during the first two weeks of August
Paid in cash part of the amount owing for supplies purchased on August 12		80
	25	Paid the following August expenses in cash:
	Rent	700
	Salaries	2,000
	Telephone
		Truck	500
	28	Called clients about payment of the balances owing from August 7
	29	Billed a client for services performed today, including $1,500 related to cash received August 5
Transferred August’s prepaid expenses to insurance expense
Counted supplies and found this amount still on hand (recorded the amount used as an expense).

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Worksheet 2

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