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.
