ACCT 201 Revel 200 points On Oclober 1 Keisha King organized

ACCT 201 Revel 2.00 points On Oclober 1, Keisha King organized Real Answers, a new consulting firm on October 3, the owner contributed $79,058 cash. On October 31, the company\'s records show the following items and amounts Cash S2.500 Cash dividends Accounts receivable 22.000 Consulting fees earned Office supplies Land Office equipment Accounts payable Common stock $ 3,360 24,000 4,320 9,600 660 680 5,313 Rent expense 36,000 Salaries expense 28,000 Telephone expense 79,058 Using the above information prepare an October 31 balance sheet for Real Answers Balance Sheet

Solution

Step-1:Calculate Net Income for the period Consulting fee earned $ 24,000 Less: Rent expenses $    4,320 Salaries expenses $    9,600 Telephone expenses $        660 Miscalaneous expenses $        680 Net Income $    8,740 Step-2:Calculate Retained Earning Beginning Balance of retianed Earning 0 Add:Net Income $    8,740 Less:Dividend declared and paid $    3,360 Ending Balance of Retained Earning $    5,380 Step-3:Preparing Balance sheet REAL ANSWERS Balance Sheet As on October 31 Assets Liabilities and Stockholder\'s Equity Cash $    2,500 Accounts Payable $    9,375 Accounts Receivable $ 22,000 Office suupplies $    5,313 Liabiities $    9,375 Current Assets $ 29,813 Stockholder\'s Equity: Land $ 36,000 Common Stock $ 79,058 Office equipment $ 28,000 Retained Earning $    5,380 Property,Plant and equipment $ 64,000 Stockholder\'s Equity $ 84,438 Total Assets $ 93,813 Total Liabilities and stockholder\'s Equity $ 93,813