Answer:
Explanation:
The preparation of the report form balance sheet as of August 31, 2019 is presented below:
Sentinel Travel Service
Report form balance sheet
For the year ended August 31, 2019
Assets
Cash $143,125
Account receivable $54,240
Supplies $9,300
Land $248,000
Total assets $454,665
Liabilities
Account payable $19,370
Owner equity
Ending capital $435,295
Total liabilities
And owners equity $454,665
The net income would be
= Fees earned - Office expense - Miscellaneous expense - Wages expense
= $774,800 - $178,205- $15,495 - $371,905
= $209,195
And, the ending capital would be
= Opening capital - withdrawn amount + net income - additional cpiatl
= $209,000 - $29,400 + $209,195 + $46,500
= $435,295
