Question

Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 20Y7, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows:

Accounts payable	$36,000
Accounts receivable	116,250
Accumulated depreciation-equipment	184,200
Cash	?
Common stock	75,000
Equipment	475,350
Land	300,000
Prepaid insurance	6,200
Prepaid rent	20,000
Retained earnings	635,600
Salaries payable	8,100
Supplies	4,900
Unearned fees	18,000

Prepare a classified balance sheet that includes the correct balance for Cash. Land must be entered as the first fixed asset. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amounts should be indicated by a minus sign. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

Labels
Current assets
Current liabilities
For the Year Ended June 30, 20Y7
June 30, 20Y7
Property, plant, and equipment
Amounts Descriptions
Book value-equipment
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and stockholders’ equity
Total property, plant, and equipment
Total stockholders’ equity

Prepare a classified balance sheet that includes the correct balance for Cash. Land must be entered as the first fixed asset. Be sure to complete the statement heading. Refer to the Instructions and the list of Labels and Amount Descriptions for the exact wording of text entries. Negative amounts should be indicated by a minus sign. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

Dynamic Weight Loss Co.

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16	Liabilities
17
18
19
20
21
22	Stockholders’ Equity
23
24
25
26

Answer 1

Dynamic Weight Loss Co.

BALANCE SHEET

AS OF JUNE 30,2007

PARTICULARS	$	$	$
Assets
Current Assets
Cash		34200
Accounts receivable		116,250
Supplies		4,900
Prepaid Insurance		6,200
Prepaid Rent		20,000
Total current assets			181550
Property, plant and equipment
Land		300,000
Equipment	475,350
Less: Accumulated depreciation – Equipment	(184,200)
Book Value – Equipment		291150
Total property, plant, and equipment			591150
Total assets			772700
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		36,000
Salaries Payable		8,100
Unearned fees		18,000
Total liabilities			62100
Stockholders’ equity
Common stock		75,000
Retained earnings		635,600
Total stockholders’ equity			710600
Total liabilities and stockholders’ equity			772700

Cash here is the balancing figure. The amount reuired to balance both the side of balance sheet is taken as cash amount.

ie, Cash=772700-(116,250+4,900+6,200+20,000+591150) = $34200