Ronald Thomas is opening a tax preparation service on December 1, which will be called Ronald's Tax

Question:

Ronald Thomas is opening a tax preparation service on December 1, which will be called Ronald's Tax Service. Thomas plans to open the business by depositing $25,000 cash into a business checking account. The following assets will also be owned by the business: furniture (fair market value of $7,500) and computers and printers (fair market value of $8,500). There are no outstanding debts of the business as it is formed.
INSTRUCTIONS
Prepare a for December 1, 2019, for Ronald's Tax Service by entering the correct balances in the appropriate accounts. (You will need to use the accounting equation to compute owner's equity.) Analyze: If Ronald's Tax Service had an outstanding debt of $8,000 when the business was formed, what amount should be reported on the for owner's equity?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...