Figgaro Company's Accounts and Their Balances,as of the End of August,are

Essay

Figgaro Company's accounts and their balances,as of the end of August,are included below.All accounts have normal balances:
$$\begin{array} { l l l } \text { Accounts receivable } & \$ 36,000 & \text { Cash } &\$ 27,000 \\\text { Equipment } & 59,000 &\text { Advertising expense } & 5,000 \\\text { Service revernues earned } & 75,000& \text { Accounts payable } & 31,000 \\\text { Rent expense } & 3,600& \text { Dividends } & 24,000 \\\text { Office supplies } & 1,500 &\text { Salaries expense } & 30,000 \\\text { Notes payable } & 22,000& \text { Common Stock } & 58,100\end{array}$$
a.Calculate net income.
b.Determine the amount of total equity to be shown on the August 31 balance sheet.