| Cash | A/R | Supplies | Equip. | A/P | Jane Doe, Capital | |
| 1. Jane invests $25,000 in the business. | +25000 | +25000 | ||||
| NEW BALANCE | +25000 | +25000 | ||||
| 2. Jane buys new equipment for $8,000 | -8000 | +8000 | ||||
| NEW BALANCE | +17000 | +8000 | +25000 | |||
| 3. Jane receives $5,000 of supplies she ordered. | +5000 | +5000 | ||||
| NEW BALANCE | +17000 | +5000 | +8000 | +5000 | +25000 | |
| 4. Jane pays $1,200 of rent for the month | -1200 | -1200
Rent Expense |
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| NEW BALANCE | +15800 | +5000 | +8000 | +5000 | +23800 | |
| 5. Jane pays for $5000 on the supplies. | -5000 | -5000 | ||||
| NEW BALANCE | +10800 | +5000 | +8000 | +23800 | ||
| 6. Jane does $6,000 of work for a client and sends them a bill. | +6000 | +6000
Revenue |
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| NEW BALANCE | +10800 | +6000 | +5000 | +8000 | +29800 | |
| 7. Jane pays her lawyer $400 for contracts drawn up for the company. | -400 | -400 | ||||
| NEW BALANCE | +10400 | +6000 | +5000 | +8000 | +29400 | |
| 8. Jane pays $300 to her cousin for helping her do office work. | -300 | -300
Salary Expense |
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| NEW BALANCE | +10100 | +6000 | +5000 | +8000 | +29100 | |
| 9. Jane withdraws $1,000 from the business. | -1000 | -1000 | ||||
| NEW BALANCE | +9100 | +6000 | +5000 | +8000 | +28100 | |
| 10. Jane's client from #6 above pays $5000 on their bill. | +5000 | -5000 | ||||
| NEW BALANCE | +14100 | +1000 | +5000 | +8000 | +28100 |
What would the balance in Jane Doe, Capital be on the balance sheet? $28,100
Which items in the last column are revenues and expenses? See notes above in last column.
What would Net Income be for the month?
Revenue 6000 - Rent Exp (1200) - Salary Exp (300) = $4500
NOTICE: The change in cash is NOT equal to the change in revenue. Purchases of equipment & supplies as well as owners investments and withdrawals affect cash but are not income statement items.