Question

Prepare a balance sheet for Wisemen Toys as of July 31, 2013. Wiseman’s account balances for the month ending July 31, 2013 are:

Cash	$ 9,400	Rent expense	$8,300
Accounts receivable	18,500	Utilities expense	530
Office supplies	3,100	Salaries expense	16,000
Office equipment	29,150	Misc. expenses	145
Land	70,000	Retained earning July1	12,150
Sales	55,000	Common stock	76,125
Cash dividends	2,650	Accounts payable	4,500

Answer:

Wiseman Toys Balance Sheet July 31, 2013
Assets
Total Assets	$130,150
Liabilities
Stockholders’ Equity
Total Liabilities and Stockholders’ Equity	$130,150

(Hint: You do not need all the information given: Use only those you need to prepare this report. Ignore others)

Answer 1

	For filling up the balance sheet we need to find out the Net income which will be as follows:
	Sales	$55,000
Less:	Rent expenses	$8,300
Less:	Utilities expenses	$530
Less:	Salaries expenses	$16,000
Less:	Misc expenses	$145
	Net Income	$30,025
	Calculation of closing Retained earnings
	Opening Retained earnings	$12,150
	Add:Net income	$30,025
	Less:cash dividends	$2,650
	Closing Retained earnings	$39,525
	Balance sheet
	Assets
	Land	$70,000
	Office equipment	$29,150
	Accounts receivable	$18,500
	Office supplies	$3,100
	Cash	$9,400
	Total Assets	$130,150
	Laibilities
	Accounts payable	$4,500
	Stockholder's equity
	Common Stock	$76,125
	Retained earnings	$39,525
	Total Laibilities and Stockholder's equity	$120,150
	Note:The Balance sheet is not tallying as there is a difference of $10,000.
	There might be some item whose figure is not correct or some item missing.Please check the same
	as conceptually the above solution is correct