Question

Balance Sheet The account balances of Sentinel Travel Service for the year ended August 31, 2019, are listed below. Fees earned $750,000 Office expense 295,000 Miscellaneous expense 12,000 Wages expense 450,000 Accounts payable 44,600 Accounts receivable 75,500 Cash 45,400 Land 310,000 Supplies 4,700 Barb Schroeder, the owner, invested an additional $36,000 in the business during the year and withdrew cash of $18,000 for personal use. Barb Schroeder, capital as of September 1, 2018, was $380,000. Prepare a balance sheet as of August 31, 2019. When entering assets, enter them in order of liquidity. Sentinel Travel Service Balance Sheet August 31, 2019

Answer 1

$ 750,000 Sentinel Travel Service Income Statement August 31, 2019 Fees Earned Operating expenses: Office expense $ 295,000 Wages expense $ 450,000 Miscellaneous Expense $ 12,000 Total operating expenses Net Income (Loss) $ $ 757,000 (7,000) Sentinel Travel Service Statement of Owners' Capital August 31, 2019 Barb Schroeder, Capital $ Add: Addiontal investment I$ $ Less: Net Loss $ Less: Barb Schroeder, Drawings $ Barb Schroeder, Capital (ending) $ 380,000 36,000 416,000 7,000 18,000 391,000

Balance Sheet Assets Cash Accounts receivable Supplies Land Total Assets $ $ $ $ $ 45,400 75,500 4,700 310,000 435,600 44,600 Liabilities Accounts Payable $ Owner's Equity Barb Schroeder, Capital $ Total Liabilities and Owners' Equity$ 391,000 435,600