Question

June 1, 2016, Mr. Jonathan established a business called Friend With A Truck for the purpose Exercise 4 operating an equipment rental yard. The Business also provides delivery service as Income. The business keeps complete accounting records and is one month reporting penod. The source of Business chart of accounts along with the balance of her leder accounts as of December 1, 2018 (unless otherwise indicated), are shown below Account Title Art. No. Cash Bulane Short-term Investments 1102 Accounts Receivable Allowance for the collectible kerenahe 14.220 Office Supplies 12.500 Prepaid Insurance 13,700 Prepul Rent 1110 Long-term Investments 1201 2,090,900 Rental que 1204 5.000.000 Acumulated Deprecat -Rental s 1205 like topmenu 1207 Accommitted Depreca t el 12.00 Notes Payable 2101 83.200 Accounts Payable 2102 Salaries Payable 2105 Interest Payable 2106 I neared Rental Fees Term Bank Loan 2001 1.500.000 Jonathan Capital 301 Jonathan Drawing 3102 Income Summary 3104 Rental Fees Income 4101 Delivery Service Income 4102 $103 Other Income 5101 Salan Espen 5102 Mantence Expense 5303 Bad Debte pense 5104 Depreciate Supplies Expens 5106 2109 SION Interest

Answer 1

83,200 BALANCE SHEET OF "Friend - With A-truck" AS ON 15+ DEC, 2019 ASSET LIABILITY 4 OWNER'S EQUITY CASH 2/914,100 NOTES PAYABLE: SHORT-TERM INVESTMENTS 133,900 ACCOUNTS PAYABLE! 47,200 ACCOUNTS RECEIVABLE : 2342201 TERM BANK LOAN: 1,000,000 LESS: ALLOWANCE FOR --> UN COLLECT #BLE RECEWABLE 1420 4 220,000/ * JONATHAN CAPITAL! 7,355,500 OFFICE SUPPLIES : 12,500 PRE-PAID INSURANCE: 13,700 SEE NOTE 2 LONG-TERM INVESTMENTS: 2,000,000 RENTED EQUIPMENT: 15,000,000 LESS: ACCUMULATED (-) DEPRECIATION OF RENTED. 2.000,00 3,000,000 EQUIPMENT OFFICE EQUIPMENT: 204,300 LESS ACCUMULATED DEPRECIATION OF 191, 700 8,485,900 TOTAL 8,485,900 Office EduPMENT121600

Note-1 ACCOUNTING EQUATION FORMULA # ASSETS - LIABILITES + OWNER'S EQUITY In this question we have information arbout both assets and liabilities. So, to find out owner's Equity Jonathan capitas we have to find clifference between assets and liabitity, Owner's Equity Assets - Liabilities = 8,485.900-( 83,200 +47,200 + 1,000,000) = 8,485,900 - 1,130,400 7,355,500 (21 TOT ott tok On C DOW 1171 TIDOS 4