Question

Use the following information for Exercises 16-18 below.

[The following information applies to the questions displayed below.]

Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August.

Cash	$	25,360	C. Camry, Withdrawals	$	6,000
Accounts receivable		22,360	Consulting fees earned		27,000
Office supplies		5,250	Rent expense		9,550
Land		44,000	Salaries expense		5,600
Office equipment		20,000	Telephone expense		860
Accounts payable		10,500	Miscellaneous expenses		520

Exercise 2-18 Preparing a balance sheet LO P3

Use the above information to prepare an August 31 balance sheet for Help Today. Hint: Compute the owner’s capital account balance as of August 31.

Answer 1

Answer:

HELP TODAY
Balance Sheet
As on August 31
Assets	Liabilities
Current Assets:			Current Liabilities:
Cash	25360		Accounts Payable	10500
Accounts Receivable	22360		Total current liabilities	10500
Office Supplies	5250		Long term liabilities	-
Total Current Assets		52970	Total liabilities		10500
Property, plant and Equipment			Owners Equity:
Land	44000		C Camary capital	106470
Office Equipment	20000		Total Shareholders Equity		106470
Total Property, plant and Equipment		64000
Total Assets		116970	Total Liabilities and Shareholders Equity		116970

HELP TODAY Owners Equity For the Month ending August 31
Opening capital balance of c. carry capital	102000
Add: net income (27000-9550-5600-860-520)	10470
	10470
Less: c. camry withdrawels	6000
Closing capital balance of c camry capital	106470