Question

Balance Sheet Jay Pembroke started a business in April. Prepare a Balance Sheet using the following balances for April transactions. Cash $12,950 Accounts Receivable 2,000 Office Supplies 4,600 Prepaid Insurance 1,200 Accounts Payable $300 Jay Pembroke, Capital 18,000 Jay Pembroke, Drawing 100 Service Fees 3,300 Rent Expense 750 You will need to calculate the ending balance of the Capital account.

Answer 1

Answer:

Jay Pembroke Company

Balance Sheet as of April 30

Assets:

Cash                                 $12,950

Accounts Receivable          2,000

Office Supplies                   4,600

Prepaid Insurance               1,200

Total assets                    $20,750

Liabilities:

Accounts Payable               $300

Jay Pembroke, Capital    20,450

Total liabilities + equity $20,750

Explanation:

a) Data and Calculations:

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Liabilities:

Accounts Payable $300

Statement of Owner's Equity:

Jay Pembroke, Capital 18,000

Net income                    2,550

Jay Pembroke, Drawing  (100)

Ending Capital            20,450

Income Statement for the month ended April 30

Service Fees 3,300

Rent Expense  750

Net income   2,550