(Calculation of Profit and shareholders” equity) The balances below are shown in alphabetical order in a professional service firm”s ledger at the end of a financial year.
Calculate
- The profit for the year
- The shareholders” equity at the end of the year
|
Advertising |
$15,000 |
|
Bank |
5,000 |
|
Shareholder”s equity at the beginning of the year |
71,000 |
|
Accounts payable |
11,000 |
|
Accounts receivable |
12,000 |
|
Fixed assets |
100,000 |
|
Income |
135,000 |
|
Rent |
10,000 |
|
Salaries |
75,000 |