Refer to the Summary Problem for Your Review, specifically the trial balance on page 91.

Required
1. Write the company's accounting equation, and label each element as a debit amount or a credit amount. If you use $28,500 for the owner's equity, why is the accounting equation out of balance?
2. Write the equation to compute Aylmer Horticultural Consul ting's net income or net loss for March 2014. Indicate which element is a debit amount and which element is a credit amount. Does net income represent a net debit or a net credit? Does net loss represent a net debit or a net credit?
3. How much did the owner, Jim Aylmer, withdraw during March 2014? Did the withdrawal represent a debit amount or a credit amount?
4. Considering both the net income (and net loss) and withdrawal for March 2014, by how much did the company's owner's equity increase or decrease? Was the change in owner's equity a debit amount or a credit amount?

Transcribed Image Text:

AYLMER HORTICULTURAL CONSULTING Trial Balance March 31, 2014 Balance Account Credit Number* Account Title Debit 1100 Cash $31,200 1200 4,000 Accounts receivable 300 1400 Supplies Land 1900 40,000 $ 1,300 2100 Accounts payable Notes payable Jim Aylmer, capital Jim Aylmer, withdrawals 2300 45,000 3000 28,500 3100 1,800 7,600 4000 Service revenue 400 5100 Interest expense 5200 Rent expense Salaries expense Utilities expense 1,500 5300 3,000 5400 200 Total $82,400 $82,400