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CH 1 Ex 21 Solution

The document contains balance sheets for Ebony Interiors for February 29, 2019 and March 31, 2019. It shows that as of February 29, 2019 the company had total assets of $1,150,000 including $320,000 in cash and total liabilities of $310,000. Owner's equity was $840,000. As of March 31, 2019 total assets had increased to $1,375,000 with owner's equity increasing to $975,000, indicating net income for the period of $135,000.

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62 views2 pages

CH 1 Ex 21 Solution

The document contains balance sheets for Ebony Interiors for February 29, 2019 and March 31, 2019. It shows that as of February 29, 2019 the company had total assets of $1,150,000 including $320,000 in cash and total liabilities of $310,000. Owner's equity was $840,000. As of March 31, 2019 total assets had increased to $1,375,000 with owner's equity increasing to $975,000, indicating net income for the period of $135,000.

Uploaded by

Wepa Akiyew
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Ex.

1-21

EBONY INTERIORS
Balance Sheet
February 29, 2019
Assets
Cash $ 320,000
Accounts receivable 800,000
Supplies 30,000
Total assets $1,150,000
Liabilities
Accounts payable $ 310,000
Owner’s Equity
Justin Berk, capital 840,000
Total liabilities and owner’s equity $1,150,000

EBONY INTERIORS
Balance Sheet
March 31, 2019
Assets
Cash $ 380,000
Accounts receivable 960,000
Supplies 35,000
Total assets $1,375,000
Liabilities
Accounts payable $ 400,000
Owner’s Equity
Justin Berk, capital 975,000
Total liabilities and owner’s equity $1,375,000

b. Owner’s equity, March 31............................................................................ $975,000


Owner’s equity, February 29....................................................................... 840,000
Net income................................................................................................... $135,000

c. Owner’s equity, March 31............................................................................ $975,000


Owner’s equity, February 29....................................................................... 840,000
Increase in owner’s equity..................................................................... $135,000
Add withdrawal.................................................................................................. 50,000
Net income................................................................................................... $185,000

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