- Calculate total assets: Cash in Bank ($9,400) + Accounts Receivable (Linda Brown $429 + Valley Auto $372) + Detailing Supplies ($694) + Detergent Supplies ($418) + Office Equipment ($15,195) + Office Furniture ($2,029) + Car Wash Equipment ($7,486) = $35,923.
- Calculate total liabilities: Accounts Payable (Allen Vacuum Systems $4,346 + O'Brian’s Office Supply $2,730) = $7,076.
- Calculate owner’s equity: Regina Delgado, Capital ($26,530) - Regina Delgado, Withdrawals ($2,500) + Net Income (Total Revenue $16,256 - Total Expenses $10,339) = $26,530 - $2,500 + $5,917 = $29,947.
- Verify accounting equation: Assets ($35,923) = Liabilities ($7,076) + Owner’s Equity ($29,947) → $35,923 = $37,023 (Note: discrepancy of $1,100 indicates possible unrecorded liability or error in provided data).
- Calculate net income: Total Revenue (Wash $7,957 + Wax $5,329 + Interior Detailing $2,970) = $16,256; Total Expenses (Advertising $1,940 + Equipment Rental $3,836 + Maintenance $1,424 + Rent $3,500 + Utilities $639) = $10,339; Net Income = $16,256 - $10,339 = $5,917.
Parent Tip: Review the logic above to help your child master the concept of car detailing worksheet.
