Question

EX 4-12 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: Obj. 2 Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Common Stock Equipment Land $ 8,400 6,000 620,300 7,500 11,200 21,000 $ 51,200 Prepaid Insurance 187,500 Prepaid Rent 186,000 Retained Earnings ? Salaries Payable 100,000 Supplies 325,900 Unearned Fees 375,000 Prepare a classified balance sheet that includes the correct balance for Cash.

Answer 1

Cash = $53,100 Dynamic Weight Loss Co. Balance sheet June 30, 2047 Assets Current assets Cash $ 53.100 Accounts Receivables $ 187,500 Prepaid Insurance $ 8.400 Prepaid Rent $ 6,000 Supplies S 11.200 Total Current Assets Property, plant, and equipment Equipment $ 325,900 Less: Accumulated Depreciation - Equipment S 186,000S 139,900 Land $ 375,000 Total Property, Plant, and equipment Total assets Total Liabilities and Shareholders' Equity $ 266,200 S S 514.900 781,100

$ 51,200 $ 7,500 $ 2.100 $ 60.800 S - Current Liabilities Accounts Payable Salaries Payable Unearned Fees Total current Liabilities Long Term Borrowings Total Liabilities Shareholders' Equity Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities and shareholders; Equity S 60,800 $ 100.000 $ 620,300 S S 720,300 781,100 Total Liabilities and shareholders: Equity = Total Assets $781,100 = Total Asses Total assets = Total Current assets + Total property, plant and equipment $781,100 = $213.100 + Cash + $514.900 Cash = $781,100 - $213,100 - $514.900 = $53.100