Answer:
Please see below the computation for Assets = Liabilities + Equity.
Explanation:
(+) Cash $61,000
(-) Capital $61,000
(+) Equipment $22,000
(-) Common Stock $22,000
(+) Rent Expense $1,200
(-) Cash $1,200
(+) Equipment $13,000
(-) Accounts Payable $13,000
(+) Cash $2,300
(-) Services $2,300
(+) Accounts Receivables $8,000
(-) Services $8,000
(+) Equipment $6,200
(-) Cash $6,200
(+) Wages Expense $2,400
(-) Cash $2,400
(+) Cash $4,300
(-) Account Receivable $4,300
(+) Accounts Payable $13,000
(-) Cash $13,000
(+) Dividends $1,200
(-) Cash $1,200
Net Profit = Revenue - Expenses
Net Profit = $10,300 - $3,600
Net Profit = $6,700
Assets = Total Liabilities + Shareholders' Equity
Cash + Accounts Receivables + Equipment = Accounts Payable + Capital + Retained Earning + Common Stock - Dividends
$43,600 + $3,700 + $41,200 = $0 + $61,000 + $6,700 + 22,000 - $1,200
$88,500 = $88,500
