Question

Required information [The following information applies to the questions displayed below.] 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 selected accounts and amounts for the month of August. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock 25,200 Dividends 22, 240 Consulting fees earned 5,080 Rent expense 43,890 Salaries expense 19,860 Telephone expense 10,840 Miscellaneous expenses 100,300 $ 5,830 26,880 9,390 5,450 690 390 Use the above information to prepare an August 31 balance sheet for Help Today. Hint: The ending Retained Earnings account balance as of August 31 is $5,130. HELP TODAY Balance Sheet Total equity $ 0

Answer 1

HELP TODAY
Balance Sheet
Assets		Liabilities + Equity
Current Assets:		Current Liabilities:
Cash	25,200	Accounts payable	10,840
Accounts receivable	22,240
Office supplies	5,080
Total Current Assets	$52,520	Total Current Liabilities	$10,840
Plant Asset:		Equity:
Land	43,890	Common stock	100,300
Office equipment	19,860	Retained earnings	5,130
Total Plant assets	$63,750	Total Equity	$105,430
Total Assets	$116,270	Total Liabilities + Equity	$116,270

Income Statement
Consulting fees earned	26,880
Expenses:
Rent expense	-9,390
Salaries expense	-5,450
Telephone expense	-690
Miscellaneous expense	-390
Net Income	$10,960

HELP TODAY
Statement of Retained Earnings
Retained earnings, August 1	0
Net Income	10,960
	$10,960
Dividends	-5,830
Retained earnings, August 31	$5,130

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