Question

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

Cash: 25,430
C. Camry, Withdrawals:6,080
Accounts Receivable: 22,450
Consulting Revenue:27,080
Office Supplies: 5,340
Rent Expense:9,640
Office Equipment: 20,100
Salaries Expense:5,680
Land: 44,080
Telephone Expense:970
Accounts Payable: 10,480
Miscellaneous Expenses:590
C. Camry, Capital: 102,800

Use the above information to prepare a December statement of owner's equity for Help Today. The C. Camry, Capital account balance at December 1 was0, and the owner invested 102,800 in the company on December 2. Hint: Net income for December is10,200.

Answer 1

To prepare a December statement of owner's equity for Help Today, calculate the changes in the owner's capital account by considering the beginning balance, owner's investment, net income, and withdrawals.

Step-by-step explanation:

To prepare a December statement of owner's equity for Help Today, we need to calculate the changes in the owner's capital account. Here are the steps:

1. Calculate the beginning balance of the capital account, which is $0.
2. Include the owner's investment of $102,800 on December 2 to increase the capital account balance.
3. Add the net income for December, which is $10,200, to the capital account.
4. Calculate the total withdrawals made by Carmen Camry in December, which is $6,080, and subtract it from the capital account.

Here is the December statement of owner's equity for Help Today:

Beginning Balance$0Owner's Investment$102,800Net Income$10,200Less: Withdrawals$6,080Ending Balance$107,920