Question

At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information Cash Accounts Receivable Office Supplies Office Equipment Accounts Payable Selena Cantu, Capital, September 1, 2019 Fees Income Advertising Expense Salaries Expense Telephone Expense Withdrawals $ 67,400 9, 2ΘΘ 8,000 76, 200 12, 6ΘΘ 54, 600 157, ΘΘΘ 14, 200 33, 200 2,800 13, 200 Required: Prepare a statement of owner's equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019

Answer 1

Solution:

Income statement
For the month of September, 2019
Fees income	$157,000
less: Expense
Advertising expense	$14,200
Salaries expense	$33,200
Telephone expense	$2,800
Net income	$106,800

Statement of owner's equity
For the month of September, 2019
Selena Cantu, Capital, September 1,2019	$54,600
Add: net income	$106,800
Less: Withdrawals	$13,200
Selena Cantu, Capital, September 30, 2019	$148,200

Balance Sheet
For the month ended September 31, 2019
Assets:
cash	$67,400
Accounts receivable	$9,200
Office Supplies	$8,000
Office equipment	$76,200
Total Assets	$160,800
Liabilities and Owner's capital
Liabilities:
Accounts payable	$12,600
Owner's capital:
Selena Cantu, Capital, September 30, 2019	$148,200
Total Liabilities and Owner's Capital	$160,800