Royce Alexander owns Alexander’s Consulting Service. At the beginning of September, his 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
1. Performed services for $32,000 on credit.
2. Paid $11,520 in cash for utilities.
3. Performed services for $40,000 in cash.
4. Paid $6,400 in cash for office cleaning service.
5. Sent a check for $19,200 to a creditor.

6. Paid $7,680 in cash for the telephone bill.
7. Issued checks for $56,000 to pay salaries.
8. Performed services for $44,800 in cash.
9. Purchased additional supplies for $8,000 on credit.
10. Received $24,000 in cash from credit clients.

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 $152,000 48,000 51,200 96,000 Accounts Payable Royce Alexander, Capital Revenue Expenses 40,000 199,200 208,000 100,000