Question

On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings. TRANSACTIONS 1. The owner invested $100,000 in cash to begin the business. 2. Paid $20,250 in cash for the purchase of equipment. 3. Purchased additional equipment for $15,200 on credit. 4. Paid $12,500 in cash to creditors. 5. The owner made an additional investment of $25,000 in cash. 6. Performed services for $9,750 in cash. 7. Performed services for $7,800 on account. 8. Paid $6,000 for rent expense. 9. Received $5,500 in cash from credit clients. 10. Paid $7,550 in cash for office supplies. 11. The owner withdrew $12,000 in cash for personal expenses Record in equation form the changes that occur in assets, liabilities, and owner's equity for the above transactions. Analyze: What is the ending balance of cash after all transactions have been recorded?

Answer 1

Answer

• Requirement

	ASSETS =				LIABILITIES +	OWNER's EQUITY
Date	Cash	Accounts receivables	Office Supplies	Equipmment	Accounts Payable	Tommy Wringley, Capital	Tommy Wringley, Drawings	Revenues	Expenses
1	$100,000					$100,000
2	($20,250)			$20,250
3				$15,200	$15,200
4	($12,500)				($12,500)
5	$25,000					$25,000
6	$9,750							$9,750
7		$7,800						$7,800
8	($6,000)								($6,000)
9	$5,500	($5,500)
10	($7,550)		$7,550
11	($12,000)						($12,000)
Ending balance	$81,950	$2,300	$7,550	$35,450	$2,700	$125,000	($12,000)	$17,550	($6,000)

• Analyse Part

Ending balance of Cash = $ 81,950