Question

Make a balance sheet based on the following information: The company just opened On April 1, merchandise costing 1,500 was added to inventory. The beginning balance of inventory was $0. Electric bill for $400 was received. Cash account currently has $20,000. A/P is currently $100. (hint you may have to create additional accounts to balance)

Answer 1

Balance sheet
Assets
Current assets
Cash	$ 20,000.00
Merchandise Inventory	$    1,500.00
Total Current assets	$ 21,500.00
Total Assets	$ 21,500.00
Liabilities and Shareholder's Equity
Liabilities
Current liabilities
Accounts Payables	$        100.00
Accrues expenses	$        400.00
Total Current liabilities	$        500.00
Total Liabilities	$        500.00
Shareholder's equity	$ 21,000.00
Total Liabilities and Shareholder's equity	$ 21,500.00