Mr.

Chu ABM Hair Product

Trial Balance

February 28, 2010

Account No. Account Title Debit Credit

101 Cash 50,400

102 Accounts Receivable 0

103 Supplies 1,000

104 Equipment 10,000

201 Accounts Payable 500

301 Mr. Chu Capital 55,000

302 Mr. Chu Drawing 2,000

401 Sales 20,000

402 Sales Discount 120

403 Sales Return and Allowances 1,000

501 Purchases 5,000

502 Purchase Discount 70

503 Purchase Return and Allowances 1,500

504 Freight In 200

601 Salaries Expense 4,000

602 Utilities Expense 1,500

603 Freight Out 350

604 Rent Expense 1,500

______________ ______________

77,070 77,070
 Cost of Good Sold

Purchases 5,000

Less: Purchase Return and Allowance 1,500

Purchase Discount 70 (1,570)

Net Purchase 3,430

Add: Freight In 200

Goods Available for sale 3,630

Less: Merchandise Inventory. (20,000)

Ending

Net Cost of Purchase -16,370

 Mr. Chu ABM Hair Product

Statement of Income

February 28, 2010

Sales 20,000

Less: Sales Return and Allowances 1,000

Sales Discount 120 1,120

Net Sales 18,880

Cost of Good Sold -16,370

Less: Expenses

Salaries 4,000

Utilities 1,500

Freight Out 350

Rent 1,500 7,350

Net Income 27,900

 Mr. Chu ABM Hair Product

Statement in Changes in Owner's Equity

For the month ended February 28, 2010

Mr. Chu, Capital, February 1,2010 50,000

Add: Net Income for 2010 27,900

Additional Investment 5,000 32,900

Subtotal 82,900

Less: Withdrawals by Proprietor (2,000)

Mr. Chu, Capital, February 28, 2010 80,900

 Mr. Chu ABM Hair Product

Statement of Financial Position

February 28, 2010

Current Assets

Cash 50,400

Accounts Receivable 0

Supplies 1,000

Merchandise Inventory 20,000

Total Current Assets 71,400

Non-current Assets

Equipment 10,000

Total Assets 81,900

Liabilities and Owner's Equity

Current Liabilities

Account Payable 500

Total Liabilities 500

Owner's Equity

Mr. Chu Capital 80,900

Total Liabilities and Owner's Equity 81,900

Mr. Chu ABM Hair Products

Statement of Cash Flow

February 28, 2010

Operating Activities

Cash received from costumer 19,380

Cash payment to supplier (3,630)

Payment of expenses (7,350)

Total Operating 8,400

Financing Activities

Purchased Equipment and Supplies 11,000

 Drawing 2,000

Total Financing 13,000

Investing Activities

Capital Investment 55,000

Total Cash Flow 02-28-10 50,400