Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows
Cash
$10,000
Accounts Receivable
$20,000
Supplies on Hand
$15,000
Prepaid Insurance
$5,000
Notes Payable
$10,000
Accounts Payable
$10,000
Capital Stock
$25,000
Retained Earnings
$5,000
During August the following transactions occurred:
Aug. 6 Rendered services for various clients on account for $10,890.
Aug. 13 Received $2,500 on account from clients.
Aug. 18 Paid $4,080 on accounts payable.
Aug. 18 Paid miscellaneous expenses, $1,200.
Aug. 31 Determined that $4,080 insurance premiums expired during August
Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890
Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $
Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $
Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ 1500
Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $
Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ 15920
Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ 31500
4110
920
