Cullen Beatty Plans to Start a Consulting Business-Cullen Consulting Services

question 52

Essay

Cullen Beatty plans to start a consulting business-Cullen Consulting Services.In preparation to do this,on April 1,2016,he invested $50,000 in cash and $19,000 in equipment,and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month.He then signed a one-year lease agreement on an office building for $6,000,paying the full amount in advance.
Prepare a Balance Sheet for Cullen Consulting Services as of April 1,2016,before he conducts any services.

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Definitions:

Investment Account Balance

The total value of all the investments held in an investor's account, including stocks, bonds, mutual funds, and other assets.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control.

Goodwill

An intangible asset that arises as a result of acquiring another company at a premium price, representing the future economic benefits of non-physical assets.

Buildings Account

An account on the balance sheet that records the cost and depreciation of physical structures owned by a business.