start with $3,500 in cash and in owner's equity.
You sell product purchased for $750 for $1,525.00
You purchase equipment for $500.
You pay the rent by check for $450
You receive next month's power bill for $155.00
Cash $_____ Accounts Payable $___
Equipment $ 500.00 Owner's Equity: Investment$_
Total $___ Total$___
Cash- $3,325.00
Total Assets- $3,825.00
Accounts payable- $155.00
Owners Equity- $3,670.00
Total- $3,825.00
Yes thank u this is correct
this was really helpful thank you
To update the Cash, Accounts Payable, Equipment, and Owner's Equity accounts, we need to analyze the transactions step-by-step.
1. Cash:
- We start with $3,500.
- You sell a product for $1,525. The cash increases by $1,525.
- You pay the rent by check for $450. The cash decreases by $450.
- You receive next month's power bill for $155. The cash does not change since it is just a notification.
So, the updated Cash balance is: $3,500 + $1,525 - $450 = $4,575.
2. Accounts Payable:
- There is no information given about any specific payable transaction in the provided data. Therefore, the Accounts Payable balance remains unchanged: $0.
3. Equipment:
- You purchase equipment for $500. The Equipment balance increases by $500.
So, the updated Equipment balance is: $500.
4. Owner's Equity: Investment:
- The owner's equity starts with $3,500 in cash and in owner's equity.
- As no additional investment or withdrawal information is given, the Owner's Equity: Investment balance remains unchanged: $3,500.
Now, let's summarize the updated balances:
Cash: $4,575
Accounts Payable: $0
Equipment: $500
Owner's Equity: Investment: $3,500