Question

The following is a random list showing the account balances of various assets, liabilities, revenues and expenses for Jones Painting Company at December 31, 2020, the end of its first year of operations.

Accounts receivable 7,100

Acounts payable 2,500

salary expense 3,200

repair expense 700

truck 8,300

equipment 6,700

unearned revenue 3,000

cash 6,100

supplies expense 1,600

service revenue 15,800

Gasoline Expense 3,000

Salary payable 2,100

3. the Statement of owners equity would show an ending balance of

A. 21,800

B. 18,800

C. 20,600

D. 25,300

E. 26, 500

Answer 1

Correct answer------------$20,600

Working

Service revenue	$        15,800
Less: Expenses
salary expense	$          3,200
repair expense	$              700
supplies expense	$          1,600
Gasoline Expense	$          3,000
Total expense	$          8,500
Net income	$          7,300
Add: Common stock	$        13,300
Ending balance in equity	$        20,600

Common stock is calculated by adding all debit balanes and deducting all credit balances from the debit total.