Question

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Answer 1

Solution

Cash	$       20,000.00
Accounts receivables	$    1,40,000.00
Merchandise inventory	$    1,01,700.00
Equipment	$       81,200.00
Allowance for Doubtful Accounts		$   4,400.00
Kimberly Payne, Capital		$ 3,38,500.00
Total	$    3,42,900.00	$     3,42,900.00

Capital balance of Kimberly
Assets brought in
Cash	$       20,000.00
Accounts receivables	$    1,40,000.00
Merchandise inventory	$    1,01,700.00
Equipment	$       81,200.00
Total assets	$    3,42,900.00
Less: Allowance for Doubtful accounts	$          4,400.00
Capital balance of Kimberly	$    3,38,500.00