Asked by Kervin Huang on Jun 15, 2024
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Using the following accounting equation elements and their balances, prepare, in good format a balance sheet in report form for Bright Futures Company for the month ended August 31. Telephone expense $1,150 Cash 3,000 Accounts payable 1,540 Jason Bright, drawing 800 Fees earned 15,700 Rent expense 1,400 Supplies 140 Accounts receivable 1,500 Computer equipment 20,000 Jason Bright, capital (August 1) 14,320 Wages expense 4,800 Utilities expense 750 Notes payable 2,400 Office expense 420\begin{array} { l r } \text { Telephone expense } & \$ 1,150 \\\text { Cash } & 3,000 \\\text { Accounts payable } & 1,540 \\\text { Jason Bright, drawing } & 800 \\\text { Fees earned } & 15,700 \\\text { Rent expense } & 1,400 \\\text { Supplies } & 140 \\\text { Accounts receivable } & 1,500 \\\text { Computer equipment } & 20,000 \\\text { Jason Bright, capital (August 1) } & 14,320 \\\text { Wages expense } & 4,800 \\\text { Utilities expense } & 750 \\\text { Notes payable } & 2,400 \\\text { Office expense } & 420\end{array} Telephone expense Cash Accounts payable Jason Bright, drawing Fees earned Rent expense Supplies Accounts receivable Computer equipment Jason Bright, capital (August 1) Wages expense Utilities expense Notes payable Office expense $1,1503,0001,54080015,7001,4001401,50020,00014,3204,8007502,400420
Balance Sheet
The balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.
Telephone Expense
This represents the cost associated with telephone usage and services for a business, classified as an office expense.
Fees Earned
Fees earned refer to the income a company receives from providing services to its clients, typically recorded in the income statement.
- Familiarize yourself with and describe the parts and intentions of key financial statements, such as the income statement, statement of owner's equity, balance sheet, and cash flow statement.
- Distinguish and sort items listed on income statements, balance sheets, and statements of owner's equity.
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Learning Objectives
- Familiarize yourself with and describe the parts and intentions of key financial statements, such as the income statement, statement of owner's equity, balance sheet, and cash flow statement.
- Distinguish and sort items listed on income statements, balance sheets, and statements of owner's equity.