Question

The following financial data are for the dental practice of Dr. Jose Ortiz when he began operations in July.

1. Owes $18,600 to the Sanderson Equipment Company.
2. Has cash balance of $13,100.
3. Has dental supplies of $3,450.
4. Owes $3,980 to Galaxy Furniture Supply.
5. Has dental equipment of $26,150.
6. Has office furniture of $7,600.

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

Answer 1

Answer:

Balance Sheet
Assets		Liabilities
Cash	$13,100	Accounts payable	$22,580
Supplies	$3,450
Equipment	$26,150	Equity:
Office furniture	$7,600	Dr.Ortiz's Capital	$27,720
Total Assets	$50,300	Total liabilities and Equity	$50,300

Calculations:

Owes to Sanderson equipment company	$18,600
Owes to Galaxy furniture	$3,980
Accounts payable	$22,580
Total assets	$50,300
(Less): Total liabilities	($22,580)
Dr. Ortiz's Capital	$27,720