On Jan1,2012,William Kelly Started Kelly's Computer Service by Investing $10,000

question 109

Essay

On Jan.1,2012,William Kelly started Kelly's Computer Service by investing $10,000.On Jan.3,the business borrowed $10,000 from a creditor and executed a Note payable with the principal and interest to be due in one year.On Jan.5,the business purchased $12,000 of equipment for cash.On Jan.8,Kelly's rendered service to his first corporate client and earned $2,500 in cash.On Jan.12,Kelly's incurred repair expense of $1,200 and promised to pay the repair contractor the following month.On Jan.18,Kelly's rendered service to a new client in the amount of $6,000 "on account," (the client promised to pay the following month).At the end of January,Kelly took a withdrawal of $1,000.Please prepare an income statement for the month of January,a statement of owner's equity for the month of January,and a balance sheet at Jan.31,2012.

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Definitions:

Unethical

Behaviors or actions that are morally wrong, not conforming to accepted standards of conduct.

Business Ethics

The use of ethics and ethical principles to solve business dilemmas.

Standards

Established benchmarks or criteria that define the quality, quantity, and functionality of products, services, or processes.

Conduct

The manner in which a person behaves, especially on a particular occasion or in a specific context.