Question

Balance Sheet Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows: Accounts Payable $37,700 Accounts Receivable 116,750 Accumulated Depreciation - Equipment 186,400 Cash ? Equipment 474,150 Land 300,000 Prepaid Insurance 7,200 Prepaid Rent 21,000 Salaries Payable 9,000 Cheryl Viers, Capital 710,300 Supplies 4,800 Unearned Fees 18,000 Prepare a classified balance sheet that includes the correct balance for Cash. Optimum Weight Loss Co. Balance Sheet November 30, 2019 Assets Current assets: Cash $ Accounts receivable Supplies Prepaid insurance Prepaid rent Total current assets $ Property, plant, and equipment: Land $ Equipment $ Less accumulated depreciation Total property, plant, and equipment Total assets $ Liabilities Current liabilities: $ Total liabilities $ Owner's Equity Total liabilities and owner's equity $

Answer 1

• If Balance Sheet is correct, its Total Assets will be equal to Total Liabilities & Equity.
• Now, we don’t know the cash balance. Lets try full balance sheet without ‘Cash balance’. The Balance sheet wont match. The difference will be the balance of Cash Account.

Balance Sheet
Nov 30, 2019
ASSETS
Current Assets:
Cash	[to be calculated]
Accounts receivables	$                                 116,750.00
Supplies	$                                     4,800.00
Prepaid Insurance	$                                     7,200.00
Prepaid Rent	$                                   21,000.00
Total Current Assets		$                149,750.00
Property Plant & Equipment:
Land		$                300,000.00
Equipment	$                                 474,150.00
Less: Accumulated Depreciation	$                                 186,400.00	$                287,750.00
Total Property Plant Equipment		$                587,750.00
Total Assets		$                737,500.00
LIABILITIES
Current Liabilities:
Accounts Payable		$                  37,700.00
Salaries payable		$                     9,000.00
Unearned Fees		$                  18,000.00
Total Liabilities		$                  64,700.00
OWNER's EQUITY
Cheryl Viers Capital		$                710,300.00
Total Liabilities & Owner's Equity		$                775,000.00

• See that Total Asset = $ 737,500, while Total Liabilities & Equity = $ 775,000. The difference 775000 – 737500 = 37500 is the Cash Balance
• Complete Balance Sheet

Balance Sheet
Nov 30, 2019
ASSETS
Current Assets:
Cash	$                                   37,500.00
Accounts receivables	$                                 116,750.00
Supplies	$                                     4,800.00
Prepaid Insurance	$                                     7,200.00
Prepaid Rent	$                                   21,000.00
Total Current Assets		$                187,250.00
Property Plant & Equipment:
Land		$                300,000.00
Equipment	$                                 474,150.00
Less: Accumulated Depreciation	$                                 186,400.00	$                287,750.00
Total Property Plant Equipment		$                587,750.00
Total Assets		$                775,000.00
LIABILITIES
Current Liabilities:
Accounts Payable		$                  37,700.00
Salaries payable		$                     9,000.00
Unearned Fees		$                  18,000.00
Total Liabilities		$                  64,700.00
OWNER's EQUITY
Cheryl Viers Capital		$                710,300.00
Total Liabilities & Owner's Equity		$                775,000.00