Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business follow. Transactions a. Sara-Jayne Parsons invested $20,000 in cash to start the business. b. Paid $2,000 for advertisements in a design magazine. c. Purchased furniture for $4,100 in cash. d. Performed services for $6,050 in cash. e. Paid $240 for the monthly telephone bill. f. Performed services for $1,680 on credit. g. Purchased equipment, a fax machine, for $475; paid $75 in cash, with the balance due in 30 days. h. Paid a bill for $610 from the office cleaning service (debit miscellaneous expense). i. Received $1,660 from clients on account. j. Purchased furniture (office chairs) for $605; received credit terms of 30 days. k. Paid $4,600 for salaries. I. Issued a check for $255 in partial payment of the amount owed for furniture (office chairs). m. Received $2,420 in cash for services performed. n. Issued a check for $520 for utilities expense. o. Performed services for $2,210 on credit. p. Collected $960 from clients on account. q. Sara-Jayne Parsons withdrew $2,560 in cash for personal expenses. r. Paid $660 to Quick Copy for photocopy work performed during the month (debit miscellaneous expense).

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter3: Business Income And Expenses
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Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business follow.
Transactions
a. Sara-Jayne Parsons invested $20,000 in cash to start the business.
b. Paid $2,000 for advertisements in a design magazine.
c. Purchased furniture for $4,100 in cash.
d. Performed services for $6,050 in cash.
e. Paid $240 for the monthly telephone bill.
f. Performed services for $1,680 on credit.
g. Purchased equipment, a fax machine, for $475; paid $75 in cash, with the balance due in 30 days.
h. Paid a bill for $610 from the office cleaning service (debit miscellaneous expense).
i. Received $1,660 from clients on account.
j. Purchased furniture (office chairs) for $605; received credit terms of 30 days.
k. Paid $4,600 for salaries.
I. Issued a check for $255 in partial payment of the amount owed for furniture (office chairs).
m. Received $2,420 in cash for services performed.
n. Issued a check for $520 for utilities expense.
o. Performed services for $2,210 on credit.
p. Collected $960 from clients on account.
q. Sara-Jayne Parsons withdrew $2,560 in cash for personal expenses.
r. Paid $660 to Quick Copy for photocopy work performed during the month (debit miscellaneous expense).
Transcribed Image Text:Sara-Jayne Parsons is an architect who operates her own business. The accounts and transactions for the business follow. Transactions a. Sara-Jayne Parsons invested $20,000 in cash to start the business. b. Paid $2,000 for advertisements in a design magazine. c. Purchased furniture for $4,100 in cash. d. Performed services for $6,050 in cash. e. Paid $240 for the monthly telephone bill. f. Performed services for $1,680 on credit. g. Purchased equipment, a fax machine, for $475; paid $75 in cash, with the balance due in 30 days. h. Paid a bill for $610 from the office cleaning service (debit miscellaneous expense). i. Received $1,660 from clients on account. j. Purchased furniture (office chairs) for $605; received credit terms of 30 days. k. Paid $4,600 for salaries. I. Issued a check for $255 in partial payment of the amount owed for furniture (office chairs). m. Received $2,420 in cash for services performed. n. Issued a check for $520 for utilities expense. o. Performed services for $2,210 on credit. p. Collected $960 from clients on account. q. Sara-Jayne Parsons withdrew $2,560 in cash for personal expenses. r. Paid $660 to Quick Copy for photocopy work performed during the month (debit miscellaneous expense).
Prepare an income statement.
Revenue
Expenses
SARA-JAYNE PARSONS, ARCHITECT
Total expenses
Income Statement
Month Ended January 31, 20X1
Income Statement
Trial Balance
EA
0
0
Statement of O
Transcribed Image Text:Prepare an income statement. Revenue Expenses SARA-JAYNE PARSONS, ARCHITECT Total expenses Income Statement Month Ended January 31, 20X1 Income Statement Trial Balance EA 0 0 Statement of O
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