Question

1. Balance Sheet

   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	$11,370
   Accounts Receivable	27,400
   Accumulated Depreciation - Equipment	34,220
   Common Stock	180,000
   Cash	?
   Equipment	98,920
   Land	132,000
   Prepaid Insurance	6,370
   Prepaid Rent	3,980
   Retained Earnings	48,080
   Salaries Payable	4,430
   Supplies	680
   Unearned Fees	3,300

   Prepare a classified balance sheet that includes the correct balance for Cash.

   Dynamic Weight Loss Co.
   Balance Sheet
   June 30, 20Y7
   Assets
   Current assets:
   		$
   Total current assets			$
   Property, plant, and equipment:
   		$
   	$
   Total property, plant, and equipment
   Total assets			$
   Liabilities
   Current liabilities:
   		$
   Total liabilities			$
   Stockholders' Equity
   		$
   Total stockholders' equity
   Total liabilities and stockholders' equity			$

Answer 1

Answer:

Calculation of cash balance:

We know that,

ASSETS = LIABILITIES + STOCKHOLDERS' EQUITY

Let's classify the given balances into Assets, Liabilities and Stockholders' Equity:

ASSETS	LIABILITIES	STOCKHOLDERS' EQUITY
Accounts receivable	$27,400	Accounts payable	$11,370	Common stock	$180,000
Equipment=$98,920 Less:Accumulated depreciation=($34,220)	$64,700	Salaries payable	$4,430	Retained earnings	$48,080
Unearned fees	$3,300
Land	$132,000
Prepaid insurance	$6,370
Prepaid rent	$3,980
Supplies	$680
Cash	?
Total	$235,130 + cash	Total	$19,100	Total	$228,080

Following the Equation, ASSETS = LIABILITIES + STOCKHOLDERS' EQUITY;

$235,130 + CASH = $19,100 + $228,080

=$235,130 + CASH = $247,180

So, Cash = $247,180 - $235,130 = $12,050

Now, let's craete the classified balance sheet;

Dynamic Weight Loss Co
Balance Sheet
As on June 30 20Y7
Assets
Current assets:
Cash	$12,050
Accounts receivable	$27,400
Supplies	$680
Prepaid rent	$3,980
Prepaid insurance	$6,370
Total current assets	$50,480
Property, Plant & Equipment:
Equipment	$98,920
Less:Accumulated depreciation	($34,200)
	$64,700
Land	$132,000
Total property, plant & equipment	$196,700
Total Assets	$247,180
Liabilities
Current Liabilities:
Accounts payable	$11,370
Salaries payable	$4,430
Unearned fees	$3,300
Total liabilities	$19,100
Stockholders' Equity:
Common stock	$180,000
Retained earnings	$48,080
Total stockholders' equity	$228,080
Total liabilities & stockholders' equity	$247,180