Question

MANHATTAN FAMILY DENTISTRY

                                                                Balance Sheet

                                                              January 1, 20__

                 Assets                                      Liabilities & Stockholders’ Equity

Cash                                      $ 20,000      Liabilities:

Accounts receivable...........        31,000         Accounts payable ................................       $ 45,000

Land                                       190,000            Total liabilities..................................       $ 45,000

Building............................      225,000      Owners’ equity:

Equipment.........................      _35,000            Capital stock.....................................       456,000

Total assets.......................     $501,000      Total liabilities and owners’ equity...........      $501,000

During the first few days of January, the following transactions occurred:

Jan    2       Equipment was purchased for $38,000 on credit.

         2       The business collected $16,000 of its accounts receivable and paid $23,000 of its accounts payable.

         3       The business borrowed $60,000 from the bank, giving a note payable due in 90 days.

         3       Additional capital stock was issued in exchange for $27,000 cash.

Complete the following balance sheet for Manhattan Family Dentistry on January 4 of the current year.

                                           MANHATTAN FAMILY DENTISTRY

                                                                Balance Sheet

                                                              January 4, 20__

        Assets                                                   Liabilities & Owners’ Equity

Cash                                 $                        Liabilities:

Accounts receivable..........                             Notes payable ................................... $

Land................................                             Accounts payable..............................

Building...........................                                Total liabilities................................ $

Equipment........................                          Owners’ equity:

                                                                        Capital stock

Total assets...................... $                        Total liabilities and owners’ equity......... $             

Answer 1

1) Cash

Opening Balance on Jan 1      20000

Add :

Collected from Customer 16000

Collected from Bank 60000

Additional Capital stock issued 27000

Less :

Payments to Suppliers 23000

Cash Balance as on Jan 4     100000

2) Accounts Receivables

Opening Balance on Jan 1 - 31000

Less:

Collected from Customer - 16000

Closing Balance as on Jan 4 -   15000

3) Equipments

  Opening Balance on Jan 1 - 35000

Add:

Additional Purchase on credit - 38000

Closing Balance as on Jan 4     73000

4) Accounts Payable

Opening Balance as on Jan 1   - 45000

Add:

Equipment Purchase on Credit - 38000

Less:

Payments to Suppliers -   23000

Closing Balance as on Jan 4 - 60000

5) Capital Stock

Opening Balance as on Jan 1    - 456000   

Add:

Additional Capital Stock i     -     27000

Closing Balance as on Jan 4     - 483000

MANHATTAN FAMILY DENTISTRY

                                                                Balance Sheet as on Jan 4

ASSETS	AMOUNT	LIABILITIES AND OWNERS EQUITY	AMOUNT
Cash	100000	Liabilities: Notes Payable 60000 Accounts Payable 60000
Accounts Receivables	15000	Total Liabilities	120000
Land	190000	Owners equity: Capital Stock	483000
Building	225000
Equipment	73000
Total Assets	603000	Total Liabilities and owners equity	603000