Question

Assume all accounts start with 0; please try to determine the ending balance after all the transactions. On May 15, Deshawn Tyler opened a landscaping company called Elegant Lawns by investing $79,000 in cash along with equipment having a $39,000 value. On May 21, Elegant Lawns purchased office supplies on credit for $460. On May 25, Elegant Lawns received $8,700 cash for performing landscaping services. On May 30, Elegant Lawns received $1,900 cash in advance of providing landscaping services to a customer. What is the ending balance after all the transactions?

Answer 1

The ending balance after all transactions for Elegant Lawns is $128,140.

Step-by-step explanation:

To determine the ending balance after all the transactions, we need to calculate the total investment and revenue, as well as the total expenses incurred by Elegant Lawns.

The cash investment made by Deshawn Tyler and the value of the equipment acquired are both considered assets and will increase the balance. The purchase of office supplies on credit will increase liabilities. The cash received for performing landscaping services and the cash received in advance will increase the cash balance.

To calculate the ending balance, we add the cash investment, equipment value, and cash received, and subtract the amount owed for office supplies. The ending balance is calculated as follows: $79,000 + $39,000 + ($8,700 + $1,900) - $460 = $128,140.