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

Essay

Figgaro Company's accounts and their balances, as of the end of August, are included below. All accounts have normal balances:
$\begin{array}{|l|c|l|c|}\hline \text { Accounts receivable } & \$ 36,000 & \text { Cash. } & \$ 27,00 \\\hline \text { Equipm ent ........... } & 59,000 & \text { Advertising expense. } & 5,000 \\\hline \text { Service revenues earned. } & 75,000 & \text { Accounts payable......... } & 31,000 \\\hline \text { Rent expense................ } & 3,600 & \text { J. Figgaro, Withdrawals.. } & 24,000 \\\hline \text { Office supplies......... } & 1,500 & \text { Salaries expense............ } & 30,000 \\\hline \text { Notes payable. } & 22,000 & \text { J. Figgaro, Capital. } & 58,100 \\\hline\end{array}$
a. Calculate net income.
b. Determine the amount of owner's equity to be shown on the August 31 balance sheet.