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The assets and liabilities of Amos Moving Services at March 31, 2010, the end of

ID: 2357683 • Letter: T

Question

The assets and liabilities of Amos Moving Services at March 31, 2010, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, 2009, the beginning of the current year. Additional information: Mr. Amos made an additional investment of $25,000 during the year.

Accounts Payable
$1,200

Miscellaneous Expense
$230
Accounts Receivable
$10,340

Office Expense
$1,240
Cash
$33,990

Building
$157,630
Fees Earned
$84,350

Wages Expense
$23,550
Land
$47,000

Drawing
$16,570

Prepare a balance sheet for the current year ended March 31, 2010.

Explanation / Answer

To find the amount in the owner’s equity account at the end of the year, you take the beginning balance add investment, subtract withdrawals, and revenue earned and subtract expenses: 180,000 + 25,000 – 16,570 + 84,350 – 230 – 1240 – 23,550 = 247,760.

Balance Sheet, March 31, 2010

Assets :

Liabilities:

Cash

$33,990

Accounts Payable

$1200

Accounts Receivable

10,340

Total Liabilities

$1200

Building

157,630

Equity

247,760

Land

47,000

Total Liabilities and Equity

$248,960

Total Assets

$248,960

Balance Sheet, March 31, 2010

Assets :

Liabilities:

Cash

$33,990

Accounts Payable

$1200

Accounts Receivable

10,340

Total Liabilities

$1200

Building

157,630

Equity

247,760

Land

47,000

Total Liabilities and Equity

$248,960

Total Assets

$248,960

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