The owner, Marcus James, withdrew $3,000 from the business for personal use. What is the journal entry the company should record
1 answer:
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Answer: Balance sheets follow ALS
Explanation: ALS stands for Assets-Liabilities-Stock (equity).
So first, find all assets. Place them under "assets" and add/subtract as needed (most likely add). In your case it should look something like this:
ASSTES:
Cash $6,414
Receivables $2,662
Inventory $3,191
Prepaid Expenses $2,557
TOTAL CURRENT ASSETS: $14,824
LONG TERM ASSETS:
Land $16,643
Buildings $56,163
Equipment $2,750
TOTAL LONG TERM ASSETS: $75,556
TOTAL ASSETS: $90,380
Where total current assets are calculated by summing up the total short term assets and long term assets is the same but with long term assets. Finally total assets is the sum of both the long and short term assets. You then do the same for the liabilities and equity.
