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Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service
Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $32,500. Following is a summary of activities during this accounting period: Betty Smith, capital withdrawn: $17,900 Revenue from income tax preparation: $69,400 Revenue from monthly clients: $40,900 Salaries expense: $10,200 Advertising expense: $870 Rent expense: $4,300 Automobile expense: $1,300 Office supplies expense: $7,600. Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital account at the end of the period. Following are the account balances at the end of this accounting period (except Betty Smith, Capital): Cash: $61,400 Accounts receivable: $3,800 Office furniture and fixtures: $10,700 Office machines and computers: $17,000 Automobile: $10,000 Accounts payable: $1,700
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