Problem (Sole Proprietorship)

Marcus Gomez owns and manages a consulting firm called FM Advising, which began operations on December 1. He asks us to assist him with some financial reporting questions. On December 31, we are provided with a Tableau Dashboard that includes selected accounts and amounts for the month of December.

1. Prepare an income statement for the month ended December 31.

2. Prepare a statement of owner’s equity for the month ended December 31. The owner’s capital account balance at December 1 was $0, and the only owner investment, of $4,600 cash, occurred on December 2. Hint:Use the net income calculated in part 1.

3. Prepare a balance sheet as of December 31. Hint:Use the ending owner’s capital account balance calculated in part 2.