lawson consulting, which began operations on december 1, had the following accounts and amounts on december…

lawson consulting, which began operations on december 1, had the following accounts and amounts on december 31. the i. lawson, capital account balance at december 1 was $0 and the owner invested $22,700 cash in the company on december 2. on december 31, the companys accounts and amounts for the month of december are shown in the table below:\ncash $15,000 i. lawson, withdrawals $3,500\naccounts receivable 6,500 services revenue 18,000\nequipment 8,500 rent expense 4,000\naccounts payable 4,800 wages expense 8,000\ni. lawson, capital 22,700\nqs 2 - 17 (algo) preparing a balance sheet lo p1\nuse the above information to prepare a december 31 balance sheet for lawson consulting. hint: the ending i. lawson, capital account balance as of december 31 is $25,200.

lawson consulting, which began operations on december 1, had the following accounts and amounts on december 31. the i. lawson, capital account balance at december 1 was $0 and the owner invested $22,700 cash in the company on december 2. on december 31, the companys accounts and amounts for the month of december are shown in the table below:\ncash $15,000 i. lawson, withdrawals $3,500\naccounts receivable 6,500 services revenue 18,000\nequipment 8,500 rent expense 4,000\naccounts payable 4,800 wages expense 8,000\ni. lawson, capital 22,700\nqs 2 - 17 (algo) preparing a balance sheet lo p1\nuse the above information to prepare a december 31 balance sheet for lawson consulting. hint: the ending i. lawson, capital account balance as of december 31 is $25,200.

Answer

Explanation:

Step1: Calculate total assets

Total assets = Cash + Accounts receivable+ Equipment Total assets = $15000 + 6500+8500=$30000$

Step2: Calculate total liabilities

Total liabilities = Accounts payable = $$4800$

Step3: Confirm owner's equity

The ending I. Lawson, Capital account balance is given as $$25200$. Also, we can calculate owner's equity as follows: Beginning capital = $0$, Investment = $$22700$, Net income = Services revenue - Rent expense - Wages expense=$18000 - 4000 - 8000=$6000$, Withdrawals = $$3500$ Ending capital=Beginning capital + Investment+Net income - Withdrawals = $0 + 22700+6000 - 3500=$25200$

Answer:

Assets Amount ($) Liabilities and Owner's Equity Amount ($)
Cash 15000 Accounts payable 4800
Accounts receivable 6500 I. Lawson, Capital 25200
Equipment 8500
Total assets 30000 Total liabilities and owner's equity 30000