The following are the amounts of the assets and liabilities of Pedigree Travel S

Question

The following are the amounts of the assets and liabilities of Pedigree Travel Service at December 31, 2008, the end of the current year, and its revenue and expenses for the year. The capital of Shiann Ott, was $115,00 on January 1, 2008, the beginning of the current year. During the current year, Shiann withdrew $40,000.

Accounts payable $12,500
Accounts receivable $42,300
Cash $180,000
Fees Earned $250,000
Miscellaneous expense $1,500
Rent expense $25,000
Supplies $2,700
Supplies expense $2,800
Utilities expense $18,200
Wages expense $65,000

Explanation / Answer

Owner's Equity
=============
Beginning balance as on 1/1/2008            $115,000
Less : Withdrawls  during the year           ($40,000)
Ending Balance as on 31/12/2008             $75,000
Retained Earning
==============
Fees earned                   $250,000
Misc. expenses $1,500
Rent expense     $25,000
Supplies exp.      $2,800
Utilities exp.     $18,200
Wages exp.       $65,000 $112,500      $137,500
Owner's Equity as on 31/12/2008     $212,500
                                                          =========                    

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.