An analysis of the transactions made by Carla Vista & Co., a certified public accounting firm,...

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.)

Expert Solution

ekkarill92 answered 2 years ago

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