Question

The account balances of Sentinel Travel Service for the year ended August 31, 2019, are listed below:

Fees earned Office expense Miscellaneous expense Wages expense Accounts recelvable Accounts payable Cash Land Supplies $774,800 178,205 15,495 371,905 54,240 19,370 143,125 248,000 9,300 Barb Schroeder, the owier, invested an additional $46,500 in the business during the year and withdrew cash of $29,400 for personal use. Barb Schroeder, capital as of September 1, 2018, was $209,000

Prepare a report form balance sheet as of August 31, 2019.

Answer 1

Step-by-step explanation:

The preparation of the report form balance sheet as of August 31, 2019 is presented below:

Sentinel Travel Service

Report form balance sheet

For the year ended August 31, 2019

Assets

Cash $143,125

Account receivable $54,240

Supplies $9,300

Land $248,000

Total assets $454,665

Liabilities

Account payable $19,370

Owner equity

Ending capital $435,295

Total liabilities

And owners equity $454,665

The net income would be

= Fees earned - Office expense - Miscellaneous expense - Wages expense

= $774,800 - $178,205- $15,495 - $371,905

= $209,195

And, the ending capital would be

= Opening capital - withdrawn amount + net income - additional cpiatl

= $209,000 - $29,400 + $209,195 + $46,500

= $435,295