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27 November, 08:29

The account balances of Sentinel Travel Service for the year ended August 31, 2019, are listed below:

Fees earned Office expense Miscellaneous expense Wages expense Accounts recelvable Accounts payable Cash Land Supplies $774,800 178,205 15,495 371,905 54,240 19,370 143,125 248,000 9,300 Barb Schroeder, the owier, invested an additional $46,500 in the business during the year and withdrew cash of $29,400 for personal use. Barb Schroeder, capital as of September 1, 2018, was $209,000

Prepare a report form balance sheet as of August 31, 2019.

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  1. 27 November, 09:35
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    The preparation of the report form balance sheet as of August 31, 2019 is presented below:

    Sentinel Travel Service

    Report form balance sheet

    For the year ended August 31, 2019

    Assets

    Cash $143,125

    Account receivable $54,240

    Supplies $9,300

    Land $248,000

    Total assets $454,665

    Liabilities

    Account payable $19,370

    Owner equity

    Ending capital $435,295

    Total liabilities

    And owners equity $454,665

    The net income would be

    = Fees earned - Office expense - Miscellaneous expense - Wages expense

    = $774,800 - $178,205 - $15,495 - $371,905

    = $209,195

    And, the ending capital would be

    = Opening capital - withdrawn amount + net income - additional cpiatl

    = $209,000 - $29,400 + $209,195 + $46,500

    = $435,295
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