Question

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. Equipment 67,000 Accounts Receivable (f) 10,600 (g) (c) 1,700 (a) (d) (g) Cash 177,000 (b) 17,000 1,700 (h) (i) Accounts Payable (c) 33,000 570 9,700 3,700 67,000 Supplies 33,000 Wade Wilson, Capital (a) (b) 177,000 Fees Income Telephone Expense 570 Wade Wilson, Drawing (i) 3,700 (d) (f) 17,000 10,600 (e) Salaries Expense 9,700 (h) Required: Prepare a statement of owner's equity and a balance sheet for Residential Relocators as of December 31, 2019.

Answer 1

Answer

• Requirements asked

Statement of Owner's Equity
Wade Wilson, Capital Beginning		$177,000
Add: Net Income (27600 - 9700 - 570)	$17,330
Less: Withdrawals	$3,700
Net Increase (Decrease)		$13,630
Wade Wilson, Capital Ending		$190,630

Balance Sheet
ASSETS		LIABILITIES
Cash	$148,730	Accounts Payable	$67,000
Accounts receivables	$8,900
Supplies	$33,000	OWNER's EQUITY
Equipment	$67,000	Wade Wilson, Capital Ending	$190,630
Total Assets	$257,630	Total Liabilities & Owner's equity	$257,630

• Working for balances

Accounts title	Debit	Credit
Cash	$148,730
Accounts receivables	$8,900
Supplies	$33,000
Equipment	$67,000
Accounts Payable		$67,000
Wade Wilson Capital		$177,000
Wade Wilson Drawings	$3,700
Fees Income		$27,600
Salaries expense	$9,700
Telephone Expense	$570
Totals	$271,600	$271,600

	Trial Balance
Accounts title	Debit	Credit
Cash	=177000+17000+1700-33000-570-9700-3700
Accounts receivables	=10600-1700
Supplies	33000
Equipment	67000
Accounts Payable		67000
Wade Wilson Capital		177000
Wade Wilson Drawings	3700
Fees Income		=17000+10600
Salaries expense	9700
Telephone Expense	570