Answer:
Assets = 228,197, Liabilities = 117,399, Equity = 110,798
Explanation:
<u>Mike Lawn Care </u>
<u>Income Statement</u>
Revenue Earned $109,710
Less Expenses
Supplies $63,912
<u>Interest Expense 10,000 (73912)</u>
<u>Net Income 35798</u>
<em>First we calculate the net income and find the retained earnings.</em>
<u>Statement OF Retained Earnings</u>
Retained Earnings at the Beginning Of the Year $75,000
Add Net Income 35798
<u> Retained Earnings at the End Of the Year $ 110798 </u>
<u />
<u>Now find the cash balance</u>
<u>Cash Calculations </u>
Opening Cash $ 75,000
Add Bank Loan 100,000
Add Cash Receipts 32416
Add Unearned Revenue 7399
Less Supplies Expenses 63912
<u>Total Cash 2017416</u>
<u>Balance Sheet </u>
<u>Assets</u>
Cash 207416 (75,000 + 100,000 + $32,416-$63,912+ $7,399 )
Accounts Receivable 77294 ($109,710-$32,416 )
<u>Total Assets 228,197</u>
Liabilities
Bank Loan 100,000
Interest Payable 10,000
Unearned Revenue $7,399
<u>Total Liabilities 117,399,</u>
<u>Retained Earnings 110798</u>