The income statement includes all changes in owner's equity ...

[tingc95]

The income statement includes all changes in owner's equity except those resulting from investments or withdrawals of assets by the owner.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

For each of the following businesses, explain how a revenue journal might be modified for the specific business. 1 . Jon's Auto Repair Business 2 . Esquire Movie Theater 3 . Beach Hut Snack Bar, Restaurant, and Lounge

[lou]

Answer to Question 1

True

Answer to Question 2

Jon's Auto Repair Business might modify the revenue journal to include columnsfor each type of major repair services. In addition, columns for warranty repairsand sales taxes may be added.

The Esquire Movie Theater might modify the revenue journal to includeadmissions, concessions, and game room revenues from video games in the lobby.

The Beach Hut Snack Bar, Restaurant, and Lounge might modify the revenuejournal to include columns for snack bar sales, restaurant sales, and liquor sales inthe lounge. In addition, columns for credit card charges and sales taxes may beadded.