Question

Use the following information for the Exercises below.

[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 accounts and amounts for the month of August.

Cash	$	25,410	Consulting fees earned	$	27,060
Accounts receivable		22,420	Rent expense		9,610
Office supplies		5,320	Salaries expense		5,650
Land		44,050	Telephone expense		940
Office equipment		20,060	Miscellaneous expenses		560
Accounts payable		10,510	Common stock		102,500
Dividends		6,050

Exercise 2-18 Preparing a balance sheet LO P3

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 $4,250.)

Answer 1

Balance sheet

Assets
Current assets
Cash	25410
Account receivable	22420
Office supplies	5320
Total Current assets		53150
Non Current assets
land	44050
Office equipment	20060
Total Non Current assets		64110
Total Assets		117260
Liabilities and stockolder's equity
Current Liabilities
Account payable	10510
Long term liabilities
Total Liabilities		10510
Stockholder's equity
Common Stock	102500
Retained earnings	4250
Total Stockholder's equity		106750
Total Liabilities and stockholder's equity		117260