Question

Use the following information for the Exercises below [The following information applies to the questions displayed below.] Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company's records show the following accounts and amounts for the month of August. Cash Accounts receivable Office supplie:s Land Office equipment Accounts payable $5,870 26,900 9,420 5,490 730 410 $25,240 C. Camry, withdrawals 22,260 Consulting fees earned 5,110 Rent expense 43,920 Salaries expense 19,890 Telephone expense 10,740 Miscellaneous expenses

Answer 1

Income statement :

Revenue
Consulting fees earned	26900
Total revenue		26900
Expenses
Rent expense	9420
Salaries expenses	5490
Telephone expenses	730
Miscellaneous expense	410
Total expenses		16050
Net income (loss)		10850

Statement of owner's equity

Beginning balance	0
Add: Addition	100700
Add: Net income	10850
Less: Withdrawals	-5870
Ending balance of owner's equity	105680

Balance sheet

Assets		Liabilities and equity
Cash	25240	Account payable	10740
Account receivable	22260
Office supplies	5110	Owner's equity	105680
Land	43920
Office equipment	19890
Total assets	116420	Total liabilities and equity	116420