Question

HERE COME THE CLOWNS! is the name of a traveling circus. The lodger accounts of the busi- ness at June 30, 2015, are listed here in alphabetical order: M 2.5A a Balance Sheet; a Change in Assets Accounts Payable Accounts Receivable Animals... Cages... Capital Stock Cash..... Costumes $ 26,100 7.450 189,060 24,630 300,000 2 31,500 Notes Payable Notes Receivable Props and Equipment Retained Earrin Salaries Pub Tents Trucks $180,000 9,500 89,580 27.230 9.750 63.000 105,840 Instructions a. Prepare a balance sheet by using these mems and content of June 10, 2015. Organize your balance sheet similar to this on to be include a proper balance sheet heading, b. Assume that late in the evening of June 30, air your best had been prepared a fire destroyed one of the tents, which had cost $14,300, The cat was no insured. Explain what changes would be required in your June 30 balance sheet to telect the loss of this asset.

Answer 1

Here Come the Clowns Balance sheet June 30,2015 Assets Cash (Bal.Fig.) Accounts Receivable Notes Receivable Cages Costumes Props and Equipment Animals Trucks & wagons Tents Total Assets Amounts Liabilities & Owners Equity Amounts 22520 Accounts Payable 26100 7450 Salaries Payable 9750 9500 Notes Payable 180000 24630 31500 Total Liabilities 89580 189060 Owner's Equity: 105840 Capital Stock 300000 63000 Retained Earnings 27230 543080 Total Liabilities & Equity 543080 0 The change to the balance sheet that would need to be made is subtracting $14,300 from Tents to bring that down to $48,700. This would bring total assets down to $528,780. You would also need to adjust the Retained Earnings to $12,930 which in turn would change the total Owners' Equity to $312,930 & Total Liabilities & Owners' Equity to $528,780.00.