Question

An analysis of the transactions made by Carla Vista & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $700 for rent, $3,800 for salaries and wages, and $500 for utilities.

		Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Accounts Payable	+	Owner’s Capital	–	Owner’s Drawings	+	Revenues	–	Expenses
1.		$14,900										$14,900
2.		–2,800						$5,000		$2,200
3.		–750				$750
4.		5,500		$3,500												$9,000
5.		–1,300								–1,300
6.		–1,900												–$1,900
7.		–700																–$700
8.		350		–350
9.		–3,800																–3,800
10.										500								–500

Assume that August is the company’s first month of business.

Prepare a balance sheet at August 31, 2020. (List Assets in order of liquidity.)

Answer 1