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Q. 1-17E

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Financial & Managerial Accounting
Found in: Page 37
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Use the information in Exercise 1-15 to prepare an October 31 balance sheet for Ernst Consulting. Hint: The solution to Exercise 1-16 can help.

The balance sheet shows assets, liabilities, and equity and the total of the balance sheet is $92,610.

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Step by Step Solution

Definition of balance sheet

The balance sheet is defined as the financial statement which shows the financial position of the business organization.

Preparation of balance sheet

Ernst Consulting

Balance Sheet

October 31

Assets

Amount ($)

Liabilities

Amount ($)

Cash

11,360

Accounts payable

8,500

Accounts receivables

14,000

Office Supplies

3,250

Equity

Land

46,000

Common stock

84,000

Office equipment

18,000

Retained earnings

110

Total assets

92,610

Total liabilities and equity

92,610

Most popular questions for Business-studies Textbooks

Nina Niko launched a new business Niko’s Maintenance Co. that began operations on June 1. The following transactions were completed by the company during that first month.

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