Accts Payable 6500
Accts Receivable 2250
Adv. Expense 410
Cash 30,280
Comp Equip 6000
Office Equip 15,000
Rent Expense 800
Utilities Expense 360
Service Revenue 4600
Capital ?
Drawing 2,000

It is a sole proprietorship that have a balance after posting the transactions for a month, the 1st month of operation. All accounts have normal balances.

1. What is the amount of capital on the trial balance at the end of the month?
2. What is the amount of the balancing totals on the trial balance at the end of the month?
3. What is the amount of net income for the month?
4. What is the amount that the owner invested in the business?
5. What is the amount of owner's equity to be shown on the balance sheet at the end of the month?

1. $46,000
2. $57,100
3. $ 3,030
4. $46,000
5. $46,000+3,030-2000=47,030

Quote:

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Originally Posted by aliciar

1. $46,000
2. $57,100
3. $ 3,030
4. $46,000
5. $46,000+3,030-2000=47,030

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What did you add/subtract together to get answers 1-4?

Please don't awnser peoples homework questions here. Your not helping them learn.

Trial Balance:
Dr Cr

Cash 30,280
Accts Rec 2,250
Comp Eq 6,000
Office Eq 15,000

Accts Pay 6,500

Draw 2,000
Capital 46,000 (computed)

Revenue 4,600

Adv 410
Rent 800
Util 360
--------- -----------
57,100 57,100

Net Income = Revenues - Expenses

Owner invested $46,000 in cash = Capital Account

Well excuse me for trying to follow the rules.