Question

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 $ 25,420 C. Camry,
Withdrawals $6,070
Accounts receivable 22,430
Consulting fees earned 27,070
Office supplies 5,330
Rent expense 9,630
Land 44,070
Salaries expense 5,670
Office equipment 20,080
Telephone expense 950
Accounts payable 10,550
Miscellaneous expenses 570
Use the above information to prepare an August statement of owner's equity for Help Today. The owner's capital account balance at July 31 was $0, and the owner invested $102,600 cash in the company on August 1.

Answer 1

See below

Step-by-step explanation:

Equity is calculated as

= Assets[ Fixed + Current] - Liabilities

= [$25,420 + $22,430 + $44,070 + $20,080] - [ $6,070 + $10,550]

= $112,000 - $16,620

= $95,380