Asked by Martin hubs-boy on Jun 18, 2024
Verified
An analysis of the transactions made by Dewey Cheatem & Co. a law firm for the month of July is shown below. Each increase and decrease in owner's equity is explained. 
Instructions
Prepare a balance sheet at July 31 2016.
Balance Sheet
A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and equity, at a specific point in time.
Owner's Equity
The residual interest in the assets of a company after deducting its liabilities, representing the owners' claims against the business.
- Acquire knowledge on the components of a balance sheet and the process to compile it.
Verified Answer
AW
Aleea WashingtonJun 22, 2024
Final Answer :
DEWEY, CHEATEM & CO.Balance SheetJuly 31,2016 Assest Cash $5,950 Accounts receivable 6,750 Supplies 750 Equipment 6,000‾ Total assets $19,450‾‾ Liabilities and Owner’s Equity Liabilities Accounts payable$2,400 Owner’s equity Owner’s capital17,500‾ Total liabilities and owner’s equity $19,450\begin{array}{c}\text {DEWEY, CHEATEM \& CO.}\\\text {Balance Sheet}\\\text {July 31,2016}\\\\\begin{array}{lr}&\text { Assest}&\\\text { Cash } && \$ 5,950 \\\text { Accounts receivable } && 6,750 \\\text { Supplies } & &750 \\\text { Equipment } && \underline{6,000} \\\quad \text { Total assets } & & \underline{ \underline{\$ 19,450}} \\\\&\text { Liabilities and Owner's Equity }\\\text { Liabilities}\\\text { Accounts payable}&&\$2,400\\\text { Owner's equity}\\\text { Owner's capital}&&\underline{17,500}\\\text { Total liabilities and owner's equity }&&\$19,450\end{array}\end{array}DEWEY, CHEATEM & CO.Balance SheetJuly 31,2016 Cash Accounts receivable Supplies Equipment Total assets Liabilities Accounts payable Owner’s equity Owner’s capital Total liabilities and owner’s equity Assest Liabilities and Owner’s Equity $5,9506,7507506,000$19,450$2,40017,500$19,450
Learning Objectives
- Acquire knowledge on the components of a balance sheet and the process to compile it.
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