EX 4-12 Balance sheet

Labrador Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2014, the end of the current fiscal year, the balances of selected accounts from the ledger of Labrador Weight Loss Co. are as follows:



Accounts Payable $ 18,500 Prepaid Insurance $ 19,200
Accounts Receivable 78,250 Prepaid Rent 18,000
Accumulated Depreciation—Equipment 103,300 Salaries Payable 8,500
Cash ? Shi Deng, Capital 609,000
Equipment 300,000 Supplies 5,350
Land 290,000 Unearned Fees 9,000


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


Answer:

LABRADOR WEIGHT LOSS CO.
Balance Sheet
June 30, 2014
Assets Liabilities
Current assets: Current liabilities:
Cash* $ 37,500 Accounts payable $18,500
Accounts receivable 78,250 Salaries payable 8,500
Supplies 5,350 Unearned fees 9,000
Prepaid insurance 19,200 Total liabilities $ 36,000
Prepaid rent 18,000
Total current assets $158,300
Property, plant, and equipment:
Land $290,000
Equipment $300,000 Owner’s Equity
Less accumulated depreciation 103,300 196,700 Shi Deng, capital 609,000
Total property, plant, and
equipment 486,700 Total liabilities and owner’s
Total assets $645,000 equity $645,000
*$37,500 = $645,000 – $486,700 – $18,000 – $19,200 – $5,350 – $78,250