Answer:
Dynamic Weight Loss Co.
Statement of Financial position as at June 30, 20Y7
Assets
Current Asset $ $
Cash 72,000
Accounts Receivable 187,500
Supplies 11,200
prepaid Insurance 8,400
Prepaid Rent <u>6,000</u>
Total Current asset 285,100
Property, plant and Equipment
Land 375,000
Equipment 325,900
Accumulated Depreciation - Equipment <u> (186,000) </u> <u>514,900</u>
Total Assets <u> </u><u>800,000</u>
Liabilities and Owners Equities
Current liabilities
Accounts Payable 51,200
Salaries Payable 7,500
Unearned Fees <u> 21,000</u>
Total liabilities 79,700
Owners Equities
Common Stock 100,000
Retained Earnings <u>620,300</u>
Total Equities <u> 720,300</u>
Total Liabilities and Owners Equities <u> </u><u>800,000</u>
Explanation:
The balance sheet shows the company's assets, liabilities and equities.
Using the accounting equation
Assets = Liabilities + Equities
Total assets
= 187,500 + 325,900 - 186,000 + 375,000 + 8400 + 6000 + 11,200 + C
where C is the closing balance in the cash account
= 728,000 + C
Total liabilities
= 51,200 + 7500 + 21,000
= $79,700
Total equities
= 620,300 + 100,000
= $720,300
Since Assets = Liabilities + Equities
728,000 + C = 720,300 + 79,700
C = 720,300 + 79,700 - 728,000
C = $72,000
