Question: Describe the effects of business transactions on the basic accounting elements: assets, liabilities, owners' equity, revenues, and expenses.
Describe the language, concepts and use of financial accounts and reports.
Identify and use the sources of accounting data and information.
Identify the users of financial accounting information and the types of decisions made by users.
From the following information, please prepare an Income Statement, Statement of Owner's Equity, and Balance Sheet for the month of May of the current year.
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Cash
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$12,000
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Accounts Receivable
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16,000
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Supplies
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350
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Equipment
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16,500
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Notes Payable
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$13,000
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Accounts Payable
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12,000
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S. Jones, Capital
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18,000
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S. Jones, Drawing
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550
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Service Revenue
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6,000
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Telephone Expense
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350
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Rent Expense
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1,100
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Advertising Expense
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2,150
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$49,000
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$49,000
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