A-E=L

380000-250000= 130000
LIABILITIES=130000
• Answer: A
Net Income or Loss=75k-25k=50k
Rev>Exp
Net income=50k
1. Journalize each transaction Explanations are not required. Post the journal entries to the T-accounts, using transaction
dates as posting references in the ledger accounts. Label the balance of each account Bal. Prepare the trial balance of
Vito York, M.D., as of March 31, 2017.
Requirements
1. Record each transaction in the journal. Explanations are not required.
2. Open a T-account for each of the accounts.
3. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the
balance of each account Bal.
3. What if owners withdrawal is $3000?
Total Assets = Total Liabilities + Total Equity
Total Equity = 76,000 – 33,800 = 42,200

Our formula:

Beg Capital
+Contribution
+Net Income (or - Net Loss)
-Withdrawal
---------
End Capital

Lets calculate net income first:

Profit = Revenue – Expenses = 32,560 – 22,430 = 10,130 (net income)

we know what our ending capital is= 42,200.
42200=Beginning Capital+Owners Contribution-Owners Withdrawal+Net Income
42000=28800 (given in table above)+Owners Contribution-Withdrawal+10130
Owners Contribution-Withdrawal=4070
3000-X=4070
X=1070
A=L+E

Assets Liabilities Equity

Perfect Cleaners $68,000 $ 25,000 $ 43,000
Nice Cuts 84,000 34,000 50,000
DJ Video Rentals 99,000 61,000 38,000