Question

Transactions Layout (1) Maria Martinez invests $25,000 in cash to start a cleaning and laundry business on June 1. (2) Purchased equipment for $5,000 paying $3,500 in cash and the remainder due in 30 days. (3) Purchased supplies for $1,200 cash. Received a bill from College Clarion for $200 for advertising in the campus newspaper. (5) Cash revenues from customers for cleaning and laundry amounted to $2,600. Assets Labilities *Owner's +Revenge -Expenses Equity Transaction Cash Accounts Supplies Equipment Accounts Owner's Revenue Receivable Expenses Payable Capital (1) 25,000 25,000 Balance 25,000 25,000 -3,500 (2) Balance 5.000 1,500 21,500 5,000 1,500 25,000 (3) -1,200 1,200 Balance 20,300 1,200 5,000 1,500 25,000 (4) Balance 200 -200 20,300 1,200 5,000 1.700 24,800 2.600 (5) Balance 22.900 1,200 5000 1,700 27,400 16. What is Maria's ending Owner's Equity on 30 June (including Net Income)?

Answer 1

Assets Liabilities+ Owners Equity +Revenue -Expense Accounts Transaction Accounts Cash Supplies Equipment Owners Equity Revenue Expense Receivable Payable (1) $25,000 $25,000 (2) ($3,500) $5,000 $1,500 Balance $21,500 $5,000 $1,500 $25,000 (3) ($1,200) $1,200 Balance $20,300 $1,200 $5,000 $1,500 $25,000 (4) $200 200 Balance $20,300 $1,200 $5,000 $1,700 $25,000 $200 (5) $2,600 $2,600 Balance $22,900 $1,200 $5,000 $1,700 $25,000 $2,600 $200

1b. The Maria's ending Owner's equity on June 30 would be

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