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As of December 31, 2017, Armani Company’s financial records show the following items and amounts Cash Accounts receivable Supplies Equipment Accounts payable A. Armani, Capital, Dec. 31, 2016 A. Armani, Capital, Dec. 31, 2017 A. Armani, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $10,000 9,000 6,000 5,000 23,000 4,000 7,000 13,000 33,000 22,000 20,000 12,000 8,000 Note: Early in 2017, the owner invested $1,000 cash in the business Required Prepare a year-end statement of owner’s equity for Armani Company. Hint Notice the owner invested $1,000 cash during the year ARMANI COMPANY Statement of Owner’s Equity For Year Ended December 31, 2017 A. Armani, Capital, December 31, 2016 A. Armani, Capital, December 31, 20117
Expert Answer
| Solution of three independent questions | ||
| Armani Company | ||
| Statement of owner’s equity | ||
| Opening capital | 4000 | |
| Add:- Invested capital | 1000 | |
| Add:- Net income | 15000 | |
| Less:- withdrawal | -13000 | |
| Clsoing capital | 7000 | |
| Income statement | ||
| Consulting revenue | 33000 | |
| Rental revenue | 22000 | |
| Less:- Salaries exp. | -20000 | |
| Less:- rent exp. | -12000 | |
| Less:- Selling and adm. Exp. | -8000 | |
| Nte income tfd. | 15000 | |
| Armani company – Balance Sheet | ||
| Assets | ||
| Current assets:- | ||
| Cash | 10000 | |
| Supplies | 6000 | |
| Accounts receivable | 9000 | 25000 |
| PPE:- | ||
| Equipment | 5000 | |
| Total Assets | 30000 | |
| Liabilities and Shareholder’s Equity | ||
| Current Liabilities | ||
| Accounts payable | 23000 | |
| Owner’s equity | ||
| Owner’s equity | 7000 | |
| Total Liabilities and Owner’s Equity | 30,000 | |
| Kia company – CFS | ||
| Cash from operating activities | 6000 | |
| Cash used by investing activities | -2000 | |
| Cash used by financing activities | -2800 | |
| Net increase in cash | 1200 | |
| Opening balance | 2300 | |
| Clsoing balance | 3500 | |
