Presented Below Is a Balance Sheet for Mark Bledsoe Yard

question 34

Essay

Presented below is a balance sheet for Mark Bledsoe Yard Service at December 31, 2016.
$\begin{array}{c}\text { MARK BLEDSOE YARD SERVICE}\\\text { Balance Sheet}\\\text { December 31, 2016}\\\\\begin{array}{lclr}\text { Assets }&&\text { Liabilities and Owner's Equity }\\ \text { Cash } & \$ 13,000 & \text { Liabilities } & \\ \text { Accounts receivable } & 6,000 & \text { Accounts payable } & \$ 8,000 \\ \text { Supplies } & 9,000 & \text { Notes payable } & 15,000 \\\text { Equipment } & 11,000 & \text { Owner's equity } \\ &\underline{\quad\quad}&\text { Owner's capital }&\underline{16,000}\\ \text { Total assets } &\underline{\$ 39.000}& \text { Total liabilities \& owner's equity } &\underline{\$39,000} \\\end{array}\end{array}$
The following additional data are available for the year which began on January 1: All expenses (excluding supplies expense) total $6,000. Supplies on January 1, were $11,000 and $7,000 of supplies were purchased during the year. Net income for the year was $8,000 and drawings were $9,000.
Determine the following: (Show all computations.)
1. Supplies used during the year.
2. Total expenses for the year.
3. Service revenues for the year.
4. Owner’s capital balance on January 1.

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Definitions:

Transactions Entered

The process of recording financial or other relevant data into a system or ledger.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and sue or be sued.

Entrepreneurs

Individuals who create, organize, and operate a business or businesses, taking on greater than normal financial risks in order to do so.

C Corporation

A type of corporate structure where shareholders are taxed separately from the corporation, characterized by potential double taxation on earnings and dividends.