On July 1, Alfred Herron established Herron Commercial Appraisal Services, a firm that provides expert commercial appraisals and represents clients in commercial appraisal hearings.
INSTRUCTIONS
Analyze the following transactions. Record in equation form the changes that occur in assets, liabilities, and owner’s equity. (Use plus, minus, and equals signs.)
TRANSACTIONS
1. The owner invested $200,000 in cash to begin the business.
2. Paid $40,500 in cash for the purchase of equipment.
3. Purchased additional equipment for $30,400 on credit.
4. Paid $25,000 in cash to creditors.
5. The owner made an additional investment of $50,000 in cash.
6. Performed services for $19,500 in cash.
7. Performed services for $15,600 on account.
8. Paid $12,000 for rent expense.
9. Received $11,000 in cash from credit clients.
10. Paid $15,100 in cash for office supplies.
11. The owner withdrew $24,000 in cash for personal expenses.
Analyze: What is the ending balance of cash after all transactions have been recorded?