Reference no: EM133105472
Question - Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows:
Cash $10,000
Accounts Receivable $20,000
Supplies on Hand $15,000
Prepaid Insurance (5 months) $5,000
Notes Payable $10,000
Accounts Payable $10,000
Capital Stock $25,000
Retained Earnings $5,000
During August the following transactions occurred:
Aug. 1 Paid August rental cost for office, $2,300.
Aug. 3 Purchased supplies on account, $7,420.
Aug. 5 Used supplied in August for $2,300 .
Aug. 6 Provided services for various clients for cash, $7,420.
Required -
1: What is the balance of Supplies on Hand showing on the Balance Sheet of August 31st?
2: What is the Net Income (loss) for the month of August? In ase of a loss please use "-" (minus sign)?