Question

How do you Find The Capital?

Balance Sheet On July 1, 2019, Pat Glenn established Half Moon Realty Pat completed the tollowing transactions during the month of July A. Opened a business bank account with a deposit of $25,000 from personal funds B. Purchased office supplies on account, $1,850. C. Paid creditor on account, $1,200 D. Earned sales commissions, receiving cash, $41,500 E. Paid rent on office and equipment for the month, $3,600. F. Withdrew cash for personal use, $4,000 G. Paid automobile expenses (ncluding rental charge) for the month, $3,050, and miscellaneous expenses, $1,600 H. Paid office salaries, $5,000. L Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.

Answer 1

Amount deposited in the business bank account reduced by withdrawal for personal use is the capital amount.

Amount deposited in business bank account is $25,000 and withdrawl for personal use is $4,000

$21,000 is the capital. (ie $25,000 - $4,000)