Question

Month of April

Date
April-01	Acquired $55000 to establish the company of which $33000 was received from an initial investment through the issue of common stock to themselves and $22000 from a bank loan by signing a note. The entire note is due in 5 years and has 7 per cent annual interest rate. Interest is payable in cash on March 31 of each year.
April-01	Paid $4200 (represents 3 months) in advance rent for a one-year lease on kitchen space.
April-01	Paid $35000 to purchase a refrigerator. The refrigerator is expected to have a useful life of 5 years and a salvage value of $5000 at the end of 5 years.
April-06	Purchased supplies for $500 for cash.
April-09	Received $700 cash as an advance payment from a client to be served in May.
April-10	Recorded sale to customers. Cash receipts were $700 and invoices for sales on account were $1500.
April-15	Paid $1460 cash for employee semi-monthly salaries.
April-16	Collected $400 from accounts receivable.
April-23	Received monthly utility bills amounting to $340. The bills are to be paid in May.
April-25	Paid advertising expense for advertisements run during April, $260.
April-30	Recorded services to customers . Cash receipts were $1300 and invoices for services on account were $1800.
April-30	Paid $1460 cash for employer salaries

Calculate the closing balance as of April 30th.

Answer 1

for formulas and calculations, refer to the image below -