Question

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:

Accounts Payable	$9,370
Accounts Receivable	22,580
Accumulated Depreciation - Equipment	28,200
Common Stock	180,000
Cash	?
Equipment	81,520
Land	109,000
Prepaid Insurance	5,250
Prepaid Rent	3,280
Retained Earnings	7,960
Salaries Payable	3,650
Supplies	560
Unearned Fees	2,720

Prepare a classified balance sheet that includes the correct balance for Cash.

Dynamic Weight Loss Co.
Balance Sheet
June 30, 20Y7
Assets
Current assets:
Cash		$
Accounts receivable
Supplies
Prepaid insurance
Prepaid rent
Total current assets			$
Property, plant, and equipment:
Land		$
Equipment	$
Total property, plant, and equipment
Total assets			$
Liabilities
Current liabilities:
Accounts payable		$
Salaries payable
Unearned fees
Total liabilities			$
Stockholders' Equity
		$
Total stockholders' equity
Total liabilities and stockholders' equity			$

Feedback

Remember that the balance sheet is a formal representation of the accounting equation, such that Assets = Liabilities + Stockholders' Equity. Remembering this will help you determine the Cash balance. On a classified balance sheet, assets are separated into current and Property, Plant & Equipment (long-term assets), and liabilities are separated into current and long-term liabilities. Current assets are listed in the order of liquidity.

Answer 1