Answer:
A.$144,600
B. ASSETS $156,000
LIABILITIES $156,000
Explanation:
A. Preparation of a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019
First step is to prepare the Income statement
INCOME STATEMENT
For the month of September, 2019
Fees income $155,800
Less: Expense
Advertising Expense ($13,000)
Salaries Expense ($32,000)
Telephone Expense ($1,600)
Net income $109,200
Now let prepare the Statement of owner's equity
STATEMENT OF OWNER'S EQUTIY
For the month of September, 2019
Selena Cantu, Capital, September 1,2019 $53,400
Add: net income $109,200
Less: Withdrawals $18,000
Selena Cantu, Capital, September 30, 2019 $144,600
Therefore the statement of owner’s equity for the month of September will be $144,600
B. Preparation of the balance sheet for Cantu Wealth Management Consulting as of September 30, 2019
BALANCE SHEET For the month ended
September 30, 2019
ASSETS:
Cash $66,200
Accounts receivable $8,000
Office Supplies $6,800
Office equipment $75,000
TOTAL ASSETS $156,000
($66,200+$8,000+$6,800+$75,000)
Liabilities and Owner's capital
LIABILITIES:
Accounts payable $11,400
Owner's capital:
Selena Cantu, Capital, September 30, 2019 $144,600
TOTAL LIABILITIES and OWNER'S CAPITAL $156,000
($11,400+$144,600)
Therefore the balance sheet for Cantu Wealth Management Consulting as of September 30, 2019 will be:
ASSETS $156,000
LIABILITIES $156,000
