Question

The accounts for the balance sheet, statement of changes in equity, and income statement of Marife Sarmiento, CPA, are as follow:

Accounts Payable 63,500

Accounts Receivable 198,000

Accumulated Depreciation – Building 110,000

Accumulated Depreciation – Office Equipment 120,000

Auditing Revenues 1,361,500

Building 750,000

Cash 118,500

Depreciation Expense – Building 55,000

Depreciation Expense – Office Equipment 60,000

Sarmiento, Capital 1/1/2012 1,193,500

Sarmiento, Withdrawals 165,000

Land 75,000

Notes Receivable 60,000

Office Equipment 362,500

Office Supplies Expense 96,000

Office Supplies 28,000

Professional Development Expense 86,500

Rent Expense 52,500

Salaries Expense 735,000

Salaries Payable 30,500

Travel Expense 41,000

Utilities Expense 18,000

Additional Investment 22,000

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Answer 1

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