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Problem - 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
95,00015,000
Supplies
20,000
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.
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