Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019

Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows:


Accounts Payable $  37,700 Prepaid Insurance $    7,200
Accounts Receivable 116,750 Prepaid Rent 21,000
Accumulated Depreciation—Equipment 186,400 Salaries Payable 9,000
Cash? Cheryl Viers, Capital 710,300
Equipment474,150 Supplies 4,800
Land300,000 Unearned Fees 18,000

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


Answers:

Current assets:
Cash*$ 37,500
Accounts receivable116,750
Supplies4,800
Prepaid insurance7,200
Prepaid rent21,000
Total current assets$187,250
Property, plant, and equipment:
Land$300,000
Equipment$474,150
Less accumulated depreciation 186,400 287,750
Total property, plant, and equipment587,750
Total assets$775,000
Current liabilities:
Accounts payable$ 37,700
Salaries payable9,000
Unearned fees18,000
Total liabilities$ 64,700
Cheryl Viers, capital710,300
Total liabilities and owner’s equity$775,000
*$37,500 = $775,000 – $587,750 – $21,000 – $7,200 – $4,800 – $116,750