The following are the balances of the assets, liabilities, and equity of Kite Runner, Inc. at August

Question:

The following are the balances of the assets, liabilities, and equity of Kite Runner, Inc. at August 31, 2013:

Cash $24,000

Retained Earnings 18,400

Accounts Payable 5,000

Accounts Receivable 600

Office Equipment $4,100

Common Shares 5,000

Note Payable 1,000

Supplies 700

Requirements

1. What type of business organization is Kite Runner, Inc.?

2. Prepare the balance sheet of the business at August 31, 2013.

3. What does the balance sheet report?

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...