Question

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

1. Andrea invested $15,400 cash in the business in exchange for common stock.
2. Andrea contributed $39,000 of photography equipment to the business.
3. The company paid $4,000 cash for an insurance policy covering the next 24 months.
4. The company received $7,600 cash for services provided during January.
5. The company purchased $8,100 of office equipment on credit.
6. The company provided $4,650 of services to customers on account.
7. The company paid cash of $3,400 for monthly rent.
8. The company paid $5,000 on the office equipment purchased in transaction

Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:________

Answer 1

Answer:

the ending balance of an equity is $63,250

Explanation:

The computation of the ending balance of equity is shown below:

Cash Invested $15,400      

Photography equipment contributed $39,000      

Service revenue for cash $7,600

Service revenue on account     $4,650      

Monthly rent paid  -$3,400      

Ending balance of an equity $63,250

Hence, the ending balance of an equity is $63,250