Balance sheets, net income
Financial information related to the proprietorship of Lady Interiors for July and August 2012 is as follows:
|
July 31, 2012
|
August 31, 2012
|
|
Accounts payable
|
$90,000
|
$100,000
|
|
Accounts receivable
|
200,000
|
240,000
|
|
Garth Jacobs, capital
|
?
|
?
|
|
Cash
|
80,000
|
95,000
|
|
Supplies
|
20,000
|
15,000
|
a. Prepare balance sheets for Lady Interiors as of July 31 and August 31, 2012.
b. Determine the amount of net income for August, assuming that the owner made no additional investments or withdrawals during the month.
c. Determine the amount of net income for August, assuming that the owner made no additional investments but withdrew $35,000 during the month.