Question

Balance sheet Labels and Amounts Descriptions Balance Sheet Instructions Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2017, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows: $38,000 116,500 185,200 ? Accounts payable Accounts receivable Accumulated depreciation equipment Cash Common stock Equipment Land Prepaid insurance Prepaid rent Retained earnings Salaries payable Supplies Uneamed fees 75,000 478,650 300,000 6,600 22.000 636,500 8,700 4.700 18,600 < Previous Next All work saved Emainstructor Submit Test for Grading 18 ( 4

Answer 1

Dynamic Wight Loss Co.

Balacne Sheet as on June 30 20Y7.

Liabilities	Amount $	Assets	Amount $
Retained Earning	636,500	Land	300,000
Common Stock	75,000	Equipment W Note 01	293,450
Account Payable	38,000	Account Receivable	116,150
Salaries Payable	8,700	Supplies	4,700
Unearned Fees	18,000	Prepaid Insurance	6,600
		Prepaid Rent	22,000
		Cash Balacne ( Balancing Figure ) W Note 02	33,550
Total	776,800	Total	776,800

In question cash balance is missing.

We will find out by using accounting equation.  

As per accounting equation Assets = Laibilities + Retained Earning + Common Stock  

In Example Itself various figures as follow already provided.  

First we will identify all the figures as whetehr same is assets or liabilities  

Account Payable of $ 38000 which is laibility . due to that same will appear laibilities side in balance sheet.

Account Receivable of $ 116500 which will categorised under as assets under current assets in balance sheet.

Accumaletd depriciation on equipmnet of $ 185200 which will be deducted from equipment balance. in balance sheet.

Common Stock which   will appear under liabilities side in balance sheet.

Equipment of $ 478650 is Fixed Assets whihch will appear assset side by deucting depriciation on it in balance sheet .

Land is our assets due to that same will also appear assets side in balance sheet.

Prepaid Insurance of $ 6600 and prepaid Rent of $ 22000 is current assets due to that same will be also appear assets side in balance sheet.

Retained Earning separately given which will apear liability side in balance sheet.

Salaries Payable of $ 8700 is our current liability due to that same will appear laibility side in balance sheet.

Supplies is our inventory will also our current assets and appear under assets side in balance sheet.

Unearned Fees means cash receved for fees in advance due to that which is current laibilities and same will appear liabilkities side in Balance sheet .

W Note 01 Equipment Balacne Working  

Equipment Net = Equipment Gross - Accumalted Depriciation on Equipment

= 47,8650 - 185,200

= 293,450

Working Note 02 Cash Balance Working

In Assets Side's Total all the assets figure available with us except cash balance.

We can get by decucting all other asstes except cash   total from total assets ..

As per accounting equation Total of Laibilities = Total of Assets

Total Laibilities as per above table of balance sheet comes of $ 776,800

So Total Assets must be $ 776,800 as per accountig equation.

Now we have Total Assets Balance = $ 776,800.

Total Assets Balance except cash balance will come $ 743,250 ( 300,000+293,450+11,650+4,700+6,600+22,000).

So While Dedcuting Total Assets Balance Except Cash from Total Assets balance as per accounting equation formula we will get cash balance.

Cash Balacne   = 776,800 - 743,250

Cash Ballance      = 33,350