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	$	67,300
Accounts Receivable		9,100
Office Supplies		7,900
Office Equipment		76,100
Accounts Payable		12,500
Selena Cantu, Capital, September 1, 2019		54,500
Fees Income		156,900
Advertising Expense		14,100
Salaries Expense		33,100
Telephone Expense		2,700
Withdrawals		13,600

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

Statement of Owner's Equity

For the Month Of September 2019

Selena Cantu Capital, September 1 ,2019	54,500
Add: Net Income	$107,000
Less:: Withdrwals	($13,600)
Selena Cantu Capital september, 2019		$147,900

Explanation:

Fees Income - Expense = Net Income

= $156,900 - $14,100 - $33,100 - $2700

= $107,000

CANTU WEALTH MANAGEMENT CONSULTING

Balance Sheet

September 30,2019

Assets		Liabilities
Cash	$67,300.	Accounts Payable	$12,500
Account Receivable	$9100	Total liability	$12,500
Office supplies	$7900
Office Equipment	$76,100	Owner's Equity
		Selena cantu capital	$147,900
Total Assets	$160,400	Total liability& owner's equity	$160,400