Question

Required information [The following information applies to the questions displayed below] Carmen Camry operates a consulting firm called Help Today, which began operations company's records show the following accounts and amounts for the month of Augus Cash Accounts receivable Office supplies Land Office equipment Accounts payable $ 25, 240 C. Camry, Withdrawals 22,260 Consulting fees earned 5,110 Rent expense 43,920 Salaries expense 19,899 Telephone expense 10,740 Miscellaneous expenses $ 5,870 26,909 9,420 5,490 730 410 Use the above information to prepare an August 31 balance sheet for Help Today. Hint Compu as of August 31. HELP TODAY Balance Sheet s 0 < Prev

Answer 1

Answer

• Requirement asked

Balance Sheet
As of August 31
Assets		Liabilities
Cash	$25,240	Accounts payable	$10,740
Accounts receivable	$22,260
Office supplies	$5,110
		Owner’s Equity
Land	$43,920	C. Carry, Capital	$105,680
Office equipment	$19,890
		Total Equity	$105,680
Total assets	$116,420	Total liabilities and equity	$116,420

• Workings

Revenues
Consulting fees earned	$26,900
Total revenues		$26,900
Expenses
Salaries expense	$5,490
Rent expense	$9,420
Telephone expense	$730
Miscellaneous expenses	$410
Total expenses		$16,050
Net income		$10,850

C Carry, Capital Aug 31	0
Add: Investment by owners	$100,700
Add: Net Income	$10,850
	$111,550
Less: Withdrawals by owner	$5,870
C Carry Capital Aug 31	$105,680