Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

A. Prepare a Balance Sheet ( Vertical Format ) from this Trial Balance: $317,900

ID: 2592439 • Letter: A

Question

A.

Prepare a Balance Sheet ( Vertical Format ) from this Trial Balance:

$317,900.00

Prepare a Balance Sheet ( Vertical Format ) from this Trial Balance:

Account Name Debit Credit Cash in savings $120,000.00 Accounts receivable $5,000.00 Prepaid rent $20,000.00 Furniture and fixtures $10,000.00 Accumulated depreciation - furniture and fixtures $1,800.00 Equipment $75,000.00 Accumulated depreciation - equipment $7,500.00 Accounts payable $2,800.00 Notes payable $10,000.00 Owner's equity $150,000.00 Owner's drawing account $10,000.00 Sales $145,300.00 Laundry Supplies $4,500.00 Allowance for doubtful accounts $500.00 Advertising $5,500.00 Bad debt/Doudtful account expense $300.00 Depreciation- Furniture $600.00 Depreciation- Laundry Equipment $2,500.00 Insurance $2,500.00 Laudry Supply expense $5,000.00 Salary Expense $15,000.00 Rent $30,000.00 Utilities $12,000.00 Totals $317,900.00

$317,900.00

Explanation / Answer

Vertical Balance sheet

Working notes

Net income

Assets $ Current assets cash 1,20,000 accounts receivables         4,500 Prepaid rent       20,000 Total current assets 1,44,500 Non current assets Furniture & Fixtures, net         8,200 Equipemnt, net       67,500 Total non current assets       75,700 Total assets 2,20,200 Liabilities and shareholder's equity $ Current liabilities Accounts payable         2,800 Total current liabilities         2,800 Non current liabilities Notes payable       10,000 Total Non current liabilities       10,000 Total liabilities       12,800 Stockholder's equity Owner's equity 1,50,000 Owner's drawing     -10,000 Retained earnings       67,400 Total Liabilities and shareholder's equity 2,20,200