On March 1, 2014, the Amount of Norton Cook's Capital

question 184

Essay

On March 1, 2014, the amount of Norton Cook's capital in Cook's Catering Company was $150,000. During March, he withdrew $31,000 from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows:
$\begin{array}{ll}\text{Accounts payable} & \$ 10,250 \\\text{Accounts receivable} & 45,950 \\\text{Cash} & 23,840 \\\text{Fees earned} & 64,950 \\\text{Insurance expense} & 1,275 \\\text{Land} & 85,400 \\\text{Miscellaneous expense} & 1,210 \\\text{Prepaid insurance} & 3,000 \\\text{Rent expense} & 9,000 \\\text{Salary expense} & 20,300 \\\text{Supplies} & 900 \\\text{Supplies expense} & 525 \\\text{Utilities expense} & 2,800 \\\end{array}$ Present, in good form, (a) an income statement for March, (b) a statement of owner's equity for March, and (c) a balance sheet as of March 31.

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Definitions:

Child Tax Credit

A credit aimed at helping families offset some of the costs of raising children by reducing their tax liability.

AGI

Adjusted Gross Income, calculated as gross income minus specific adjustments, used to determine tax liability and eligibility for certain tax benefits.

Adoption Credit

A tax credit offered to adoptive parents to offset the costs of adoption, available under the U.S. tax code.

Modified AGI

Adjusted Gross Income with certain adjustments added back in, used for determining eligibility for certain tax deductions and credits.