Kimberly Ashley owns Ashley’s Consulting Service. At the beginning of September, her firm’s financial records showed the following assets, liabilities, and owner’s equity.

INSTRUCTIONS

Set up an equation using the balances given above. Record the effects of the following transactions in the equation. (Use plus, minus, and equals signs.) Record new balances after each transaction has been entered. Prove the equality of the two sides of the final equation on a separate sheet of paper.

TRANSACTIONS

Analyze: 

What is the ending balance for owner’s equity after all transactions have been recorded?

Transcribed Image Text:

Cash Accounts Receivable Supplies Office Furniture $76,000 24,000 25,600 48,000 20,000 Accounts Payable Kimberly Ashley, Capital 99,600 Revenue 104,000 Expenses 50,000