The Assets and Liabilities of Rocky's Day Spa on December

question 171

Essay

The assets and liabilities of Rocky's Day Spa on December 31 and its revenue and expenses for the year are listed below. The capital of the owner is $68,000 on January 1. The owner invested an additional $10,000 during the year.? $$\begin{array} { | l | r | l | r | } \hline \text { Accounts payable } & \$ 4,375 & \text { Spa operating expense } & \$ 23,760 \\\hline \text { Accounts receivable } & 8,490 & \text { Office expense } & 2,470 \\\hline \text { Cash } & 13,980 & \text { Spa supplies } & 9,230 \\\hline \text { Fees earned } & 98,435 & \text { Wages expense } & 26,580 \\\hline \text { Spa furniture and equipment } & 56,000 & \text { Drawing } & 38,170 \\\hline \text { Computers } & 2,130 & & \\\hline\end{array}$$ Prepare a statement of owner's equity for the current year ended December 31.

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Definitions:

Theme Room

A room designed around a specific theme or concept, often seen in hotels, entertainment venues, or personal residences.

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Real Estate Developer

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Public Sale

An auction or sale event open to the general public, where goods or assets are sold to the highest bidder.