[plchenn]

Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows:

A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution.

B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs.

C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account.

D) Reliable pays $600 rent for the first month.

E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future.

F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash.

G) Sharon takes a cash withdrawal of $2,500.

After all of the transactions, what is the amount of total owner’s equity?

[paraclete]

Time to do some work post the entries, work out the ledger balances and produce a P&L and a Balance Sheet