Susan Huang began the practice of law on October 1, 2023, with an initial investment of $20,000 in cash. She made no withdrawals during the month. After completing the first month of practice, the financial statements were prepared by Ryan Player, the secretary/bookkeeper Ms. Huang had hired. Ms. Huang almost burst out laughing when she saw them. She had completed a course in legal accounting in law school and knew the statements prepared by Player left much to be desired. Consequently, she asked you to revise the statements. The Player version is presented as follows:
Susan Huang, Lawyer
Balance Sheet
October 31, 2023
Assets Liabilities and Equity
Cash $ 3,950 Susan Huang, capital $ 20,000
Furniture 5,100
Supplies expense 1,000
Accounts payable 1,890
Rent expense 6,500
Supplies 1,560
$ 20,000 $