Question

Make balance sheet

Answer 1

Answer:

Balance Sheet as at year end

ASSETS

Cash (5000 + 600 - 800 - 2000)                        $2,800

Trade Receivable ( -600)                                      ($600)

TOTAL ASSETS                                                    $2,200

EQUITY AND LIABILITIES

EQUITY

Retained Earnings (5000 -800 - 2000)             $2,200

TOTAL EQUITY                                                    $2,200

LIABILITIES  

Liabilities                                                                      $0

TOTAL LIABILITIES                                                     $0

TOTAL EQUITY AND LIABILITIES                      $2,200

Explanation:

The Balance sheet contains balances of Assets, Liabilities and Equity as at the Reporting date.

So given the above transactions above, we have to identify which accounts (Assets, Liabilities or Equity) are affected by each transaction, than record under the relevant heading as shown in the solution.