Calculation of Equity, Assets

ChatGPT 3.5

User
The assets and labilities of Morgan dry cleaners on October 1 of the current year are follows.
cash,$1000 A/receivable $2200,supplies $850,land $11450,A payable $2030.Business transaction
during October are summarized as follow:
Transaction I
. Receiver cash from customers for dry cleaning sales $4928.
Transaction 2
. Paid creditors on account $1755
Transaction3
.Received cash from M.A Morgan as an additional investment $3700.
Transaction 4.
Paid rent for the month $1200.
Transaction 5.
Charged customer for dry cleaning sale on account $1025.
Transaction 6.
Purchase supplies on account $245.
Transaction 7
Received cash from customers on account $2000.
Transaction 8.
Received monthly invoice for dry cleaning expense for October (to be paid on
November 10) $1635.
Transaction 9.
Paid the following: wage expense $850, tuck expense $250, utilities expense
$325, miscellaneous expense $75.
Transaction 10.
Determine by taking an inventory the cost of supplies use during the month $115,
Instruction:
1. Determine the amount of Owners equity October 1 
2.  State assets, liability and Owners equity Octobe 
1

ChatGPT
Let's start by calculating the owner's equity on October 1st. Owner's equity is calculated as Assets minus Liabilities:

Given:
Assets on October 1st:

Cash: $1000
Accounts Receivable: $2200
Supplies: $850
Land: $11450
Liabilities on October 1st:

Accounts Payable: $2030
Assets on October 1st = $1000 + $2200 + $850 + $11450 = $15500
Liabilities on October 1st = $2030

Owner's equity on October 1st = Assets - Liabilities = $15500 - $2030 = $13470

Now, for the second part of your question, it seems the instructions might be cut off. Did you want me to determine the assets, liabilities, and owner's equity after considering the transactions that occurred during October?




User
Yes

ChatGPT
Let's calculate the assets, liabilities, and owner's equity after considering the transactions that occurred during October.

Transactions Recap:

Received cash from customers: $4928
Paid creditors on account: $1755
Received additional investment from M.A Morgan: $3700
Paid rent for the month: $1200
Charged customers for sales on account: $1025
Purchased supplies on account: $245
Received cash from customers on account: $2000
Received invoice for dry cleaning expense: $1635 (to be paid in November)
Paid various expenses: Wages $850, Truck $250, Utilities $325, Miscellaneous $75
Determined cost of supplies used: $115
Let's calculate the changes in the assets and liabilities:

Assets Changes:

Cash: ($4928 + $3700 - $1200 + $2000 - $850 - $115) = $9563
Accounts Receivable: ($1025 + $2000 - $4928) = $1097
Supplies: ($115 - $245) = -$130
Land: No change ($11450)
Liabilities Changes:

Accounts Payable: ($1755 - $245) = $1510
Now, let's calculate the new Owner's Equity:

Assets on October 1st = $15500
Liabilities on October 1st = $2030
Owner's equity on October 1st = $13470

Changes in Owner's Equity = (Assets Changes) - (Liabilities Changes) = ($9563 + $1097 - $130 + $11450) - $1510 = $19070

Therefore, the updated assets, liabilities, and owner's equity as of the end of October are:

Assets: $11450 (Land) + $9563 (Cash) + $1097 (Accounts Receivable) - $130 (Supplies) = $20880
Liabilities: $1510 (Accounts Payable)
Owner's Equity: $19070



User
Calculation of Equity, Assets

ChatGPT 3.5

User
The assets and labilities of Morgan dry cleaners on October 1 of the current year are follows.
cash,$1000 A/receivable $2200,supplies $850,land $11450,A payable $2030.Business transaction
during October are summarized as follow:
Transaction I
. Receiver cash from customers for dry cleaning sales $4928.
Transaction 2
. Paid creditors on account $1755
Transaction3
.Received cash from M.A Morgan as an additional investment $3700.
Transaction 4.
Paid rent for the month $1200.
Transaction 5.
Charged customer for dry cleaning sale on account $1025.
Transaction 6.
Purchase supplies on account $245.
Transaction 7
Received cash from customers on account $2000.
Transaction 8.
Received monthly invoice for dry cleaning expense for October (to be paid on
November 10) $1635.
Transaction 9.
Paid the following: wage expense $850, tuck expense $250, utilities expense
$325, miscellaneous expense $75.
Transaction 10.
Determine by taking an inventory the cost of supplies use during the month $115,
  State assets, liability and Owners equity Octobe 
1