NetSolutions earned $7,500 in fees and incurred $4,450 in operating expenses in November 2006, resulting in net income of $3,050. Owner Chris Clark invested $15,000 and withdrew $2,000, increasing his capital from $0 to $16,050. The balance sheet shows $5,900 in cash, $550 in supplies, $10,000 in land, $400 in accounts payable, and owner's equity of $16,050 as of November 30, 2006.

1. Financial Statements
NetSolutions
Income Statement
For the Month Ended November 30, 2006
Fees earned $7,500
Operating expenses:
Wages expense $2,125
Rent expense 800
Supplies expense 800
Utilities expense 450
Miscellaneous expense 275
Total operating expenses 4,450
Net income $3,050
C1 - 1

2. Financial Statements
NetSolutions
Income Statement
For the Month Ended November 30, 2006
Fees earned $7,500
Operating expenses:
Wages expense $2,125
Rent expense 800
Supplies expense 800
Utilities expense 450
Miscellaneous expense 275
Total operating expenses 4,450
Net income $3,050
C1 - 2

3. Financial Statements
NetSolutions
Income Statement
For the Month Ended November 30, 2006
Fees earned $7,500
Operating expenses:
Wages expense $2,125
Rent expense 800
Supplies expense 800
Utilities expense 450
Miscellaneous expense 275
Total operating expenses 4,450
Net income $3,050
C1 - 3

4. Financial Statements
NetSolutions
Income Statement
For the Month Ended November 30, 2006
Fees earned $7,500
Operating expenses:
Wages expense $2,125
Rent expense 800
Supplies expense 800
Utilities expense 450
Miscellaneous expense 275
Total operating expenses 4,450
Net income $3,050
C1 - 4

5. Financial Statements
NetSolutions
Statement of Owner’s Equity
For the Month Ended November 30, 2006
Chris Clark, capital, November 1, 2006 $ 0
Investment on November 1, 2006 $15,000
Net income for November 3,050
$18,050
Less withdrawals 2,000
Increase in owner’s equity 16,050
Chris Clark, capital, November 30, 2006 $16,050
C1 - 5

6. Financial Statements
NetSolutions
Statement of Owner’s Equity
For the Month Ended November 30, 2006
Chris Clark, capital, November 1, 2006 $ 0
Investment on November 1, 2006 $15,000
Net income for November 3,050
$18,050
Less withdrawals 2,000
Increase in owner’s equity 16,050
Chris Clark, capital, November 30, 2006 $16,050
C1 - 6

7. Financial Statements
NetSolutions
Statement of Owner’s Equity
For the Month Ended November 30, 2006
Chris Clark, capital, November 1, 2006 $ 0
Investment on November 1, 2006 $15,000
Net income for November 3,050
$18,050
Less withdrawals 2,000
Increase in owner’s equity 16,050
Chris Clark, capital, November 30, 2006 $16,050
C1 - 7

8. Financial Statements
NetSolutions
Statement of Owner’s Equity
For the Month Ended November 30, 2006
Chris Clark, capital, November 1, 2006 $ 0
Investment on November 1, 2006 $15,000
Net income for November 3,050
$18,050
Less withdrawals 2,000
Increase in owner’s equity 16,050
Chris Clark, capital, November 30, 2006 $16,050
C1 - 8

9. Financial Statements
NetSolutions
Statement of Owner’s Equity
For the Month Ended November 30, 2006
Chris Clark, capital, November 1, 2006 $ 0
Investment on November 1, 2006 $15,000
Net income for November 3,050
$18,050
Less withdrawals 2,000
Increase in owner’s equity 16,050
Chris Clark, capital, November 30, 2006 $16,050
C1 - 9

10. Financial Statements
NetSolutions
Balance Sheet
November 30, 2006
Assets
Cash $5,900
Supplies 550
Land 10,000
Total assets $16,450
Liabilities
Accounts payable $ 400
Owner’s Equity
Chris Clark, capital 16,050
Total liabilities and
owner’s equity $16,450
C1 - 10

11. Financial Statements
NetSolutions
Balance Sheet
November 30, 2006
Assets
Cash $5,900
Supplies 550
Land 10,000
Total assets $16,450
Liabilities
Accounts payable $ 400
Owner’s Equity
Chris Clark, capital 16,050
Total liabilities and
owner’s equity $16,450
C1 - 11

12. Financial Statements
NetSolutions
Balance Sheet
November 30, 2006
Assets
Cash $5,900
Supplies 550
Land 10,000
Total assets $16,450
Liabilities
Accounts payable $ 400
Owner’s Equity
Chris Clark, capital 16,050
Total liabilities and
owner’s equity $16,450
C1 - 12

13. Financial Statements
NetSolutions
Balance Sheet
November 30, 2006
Assets
Cash $5,900
Supplies 550
Land 10,000
Total assets $16,450
Liabilities
Accounts payable $ 400
Owner’s Equity
Chris Clark, capital 16,050
Total liabilities and
owner’s equity $16,450
C1 - 13

14. Financial Statements
NetSolutions
Statement of Cash Flows
For the Month Ended November 30, 2006
Cash flows from operating activities:
Cash received from customers $ 7,500
Deduct cash payments for expenses
and payments to creditors 4,600
Net cash flow from operating activities $ 2,900
Cash flows from investing activities:
Cash payments for acquisition of land (10,000 )
Cash flows from financing activities:
Cash received as owner’s investment $15,000
Deduct cash withdrawal by owner 2,000
Net cash flow from financing activities 13,000
Net cash flow and Nov. 30, 2006 cash balance $5,900
C1 - 14

15. Financial Statements
NetSolutions
Statement of Cash Flows
For the Month Ended November 30, 2006
Cash flows from operating activities:
Cash received from customers $ 7,500
Deduct cash payments for expenses
and payments to creditors 4,600
Net cash flow from operating activities $ 2,900
Cash flows from investing activities:
Cash payments for acquisition of land (10,000 )
Cash flows from financing activities:
Cash received as owner’s investment $15,000
Deduct cash withdrawal by owner 2,000
Net cash flow from financing activities 13,000
Net cash flow and Nov. 30, 2006 cash balance $5,900
C1 - 15

16. Financial Statements
NetSolutions
Statement of Cash Flows
For the Month Ended November 30, 2006
Cash flows from operating activities:
Cash received from customers $ 7,500
Deduct cash payments for expenses
and payments to creditors 4,600
Net cash flow from operating activities $ 2,900
Cash flows from investing activities:
Cash payments for acquisition of land (10,000 )
Cash flows from financing activities:
Cash received as owner’s investment $15,000
Deduct cash withdrawal by owner 2,000
Net cash flow from financing activities 13,000
Net cash flow and Nov. 30, 2006 cash balance $5,900
C1 - 16

17. Financial Statements
NetSolutions
Statement of Cash Flows
For the Month Ended November 30, 2006
Cash flows from operating activities:
Cash received from customers $ 7,500
Deduct cash payments for expenses
and payments to creditors 4,600
Net cash flow from operating activities $ 2,900
Cash flows from investing activities:
Cash payments for acquisition of land (10,000 )
Cash flows from financing activities:
Cash received as owner’s investment $15,000
Deduct cash withdrawal by owner 2,000
Net cash flow from financing activities 13,000
Net cash flow and Nov. 30, 2006 cash balance $5,900
C1 - 17