Bookkeeping Exercises
Menu

Financial statements simulator

Statements generated from the same posted entries as the ledger and trial balance.

Sandbox

Self-check practice on this device: your entries autosave locally. The sandbox isn't graded for mastery — use the graded practice below for that.

Brightside Services (worked example)

Period Jan 1, 2026 – Jan 31, 2026 · accrual basis · USD

Income statement

Jan 1, 2026 – Jan 31, 2026

Service Revenue
$4,000.00
Total revenue
$4,000.00
Rent Expense
($500.00)
Wages Expense
($250.00)
Supplies Expense
($150.00)
Insurance Expense
($100.00)
Depreciation Expense
($100.00)
Net income
$2,900.00

Balance sheet

As of Jan 31, 2026

Cash
$8,600.00
Accounts Receivable
$1,500.00
Supplies
$150.00
Prepaid Insurance
$1,100.00
Equipment
$2,000.00
Accumulated Depreciation – Equipment
($100.00)
Total assets
$13,250.00
Accounts Payable
$100.00
Wages Payable
$250.00
Total liabilities
$350.00
Owner Capital
$10,000.00
Current-period earnings (not yet closed)
$2,900.00
Total equity
$12,900.00
Liabilities + equity
$13,250.00

✓ Assets = Liabilities + Equity

Cash-flow view (direct, basic)

Opening cash
$0.00
Operating activities
$600.00
Investing activities
($2,000.00)
Financing activities
$10,000.00
Closing cash
$8,600.00

✓ Opening cash plus net change equals closing cash.

Graded practice

Item 1 of 4

Freeeasy

Compute net income

For the month: Service Revenue $14,600.00, Rent Expense $1,300.00, Wages Expense $5,100.00, Utilities Expense $230.00, Owner Drawings $1,650.00. Compute total expenses and net income.