Question

The following financial data are for the dental practice of Dr. Donna Wells when she began operations in July.

1. Owes $18,400 to the Allen Equipment Company.
2. Has cash balance of $12,900.
3. Has dental supplies of $3,350.
4. Owes $3,880 to Contemporary Furniture Supply.
5. Has dental equipment of $25,950.
6. Has office furniture of $7,400.

Determine the amounts that would appear in Dr. Wells’ balance sheet.

Answer 1

SOLUTION:

Assets:
Cash	12,900
Supplies	3,350
Equipment	25,950
Furniture	7,400
Total assets	49,600
Liabilities
Accounts Payable	22280
(18,400 + 3,880)
Owner's Equity	27320
(49,600-22,280)
Total liabilities & Owners Equity	49600