Question

Optimum Weight loss co offers perosnal weight reduction consulting services to individuals .After all the accounts have been closed on november 30,2019, the end of fiscal year, the balances of selected accounts from the ledger of optimum weight loss co are follows

Particulars	Amount$
Accounts payable	37,700
Accounts receivable	1,16,750
Accumulated Depreciation - Equipment	1,86,400
Cash	?
Equipment	4,74,150
Land	3,00,000
Prepaid insurance	7,200
Prepaid rent	21,000
Salaries payable	9,000
Cherry Viers,capital	7,10,300
Suppliers	4,800
Unearned fees	18,000

Prepare a classified balance sheet that includes the correct balance for cash

Answer 1

Classified balance sheet : A classified balance sheet is used to make things easier to understand. Each asset, liability, and stockholder's equity item on a classified balance sheet is assigned to a certain category.

Optimum Weight loss co

Balance sheet

As on November 30 , 2019

Assets
Current assets :
Cash		37,500
Accounts Receivable		1,16,750
Supplies		4,800
Prepaid insurance		7,200
Prepaid rent		21,000
Total current assets			1,87,250
Property,Plant & equipment :
Land		3,00,000
Equipment	4,74,150
Less : Accumulated Depreciation	1,86,400	2,87,750
Total Plant assets			5,87,750
Total Assets			$7,75,000
Liabilities
Current liabilities:
Accounts payable		37,700
Salaries payable		9,000
Unearned fees		18,000
Total liabilities			64,700
Owner's Equity
Cheryl Viers Capital			7,10,300
Total liabilities & Owner's Equity			$7,75,000

Calculation of correct balance for cash

Correct balance for cash = Total liabilites & owner's equity - total property ,plant & equipment - prepaid rent - prepaid insurance -supplies - accounts receivable

= $7,75,000 - $587,750 - $21,000 - $7,200 - $4,800 - $1,16,750

=$37,500

 

Therefore , total assets , total liabilities & owner's equity of optimum weight loss co at november 30,2019 is $7,75,000