At the end of its first month of operations, michael's consulting services reported net income of $27,100. they also had account balances of: cash, $19,400; office supplies, $2,350 and accounts receivable $10,700. the sole stockholder’s total investment in exchange for common stock for this first month was $5,350. there were no dividends in the first month.

calculate the amount of total equity to be reported on the balance sheet at the end of the month.

32,450

Explanation:

The primary accouting equation we need the keep in mind is that:

Asset = Liabilities + Equity

Asset = Liabilities + Paid-in capital + Retained earnings

Asset = Liabilities + Paid-in capital + Net income - Dividend

Puttting all the number together, we have:

19,400 + 2,350 + 10,700 = 0 + 5,350 + 27,100 - 0 (TRUE). We need to do this step to make sure that aour assumption that Liabilities = 0 is correct.

So, Total equity at the of the month is 5,350 + 27,100 = 32,450.

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