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Profit: $3650
Table 2:
Profit: $3650
Table 3:
Assets:
Cash: $6650
Equipment: $2500
Liabilities:
Equity:
Capital: $17300
Assets:
Cash: $6,650
Equipment: $2,500
Liabilities:
Owner's Equity:
Capital: $17,300
a. Liabilities: The only liability mentioned is "Supplies Payable" with an amount of $600.
This liability is used to finance the purchase of supplies.
Both investments were made by the owner and contributed to the financing of the
assets.
c. Profit/Owners' Equity: The net income for the period was $3,650, which increases the
owner's equity or capital.