Question

2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance (Template provided) Problem 2 G.G. Fitness offers consulting services. All the accounts have been closed for year end, below are selected accounts from the ledger: Accounts Payable 40,000 Prepaid Insurance 3,000 Accounts Receivable 120,000 Prepaid Rent 25,000 Accumulated Depreciation - Equipment 190,000 Salaries Payable 10,000 Cash M.A. Fitness Capital 650,000 Equipment 450,000 Supplies 5,000 Land 250,000 Unearned Fees 25,000 Instructions: 1. Prepare a balance sheet and compute the balance for Cash.

Answer 1

Balance sheet of GG fithers. for the year ended. liabilities Amount Assets Amounts MA Fitness capital $650,000 $.250,000 40,000 accounts Payable Unearned fees Salaries Payable land. Equipment - 450,000 lessi Accumulated _(190,000) depreciation $260,000 25,000 10,000 Accounts Receivables supplies. cash (Balancing are). Prepaid Rent Peepaid insurance 120,000 5,000. $62,000 25,000 3,000. $725,000 $725,000 Total Assets = Total liabilibies & capital Total Assets & cash Total liabilities & capital $663,000 + cash - $725,000. cash = $725,000 - 663,000 $62,000

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