34PGA_3
Question
Question: Preparing financial statements from the trial balance and calculating the debt ratio
The trial balance as of July 31, 2018, for Sara Simon, Registered Dietician, is presented below:
Account Title Debit Credit
Office Supplies 2,300
Cash 38,000
Accounts Receivable 9,000
Prepaid Insurance 2,400
Equipment 16,000
Accounts Payable 3,000
Unearned Revenue 3,912
Notes Payable 31,000
Common Stock 18,000
Dividends 2,800
Salaries Expense 1,700
Rent Expense 1,100
Utilities Expense 500
Service Revenue 17,888
Total Balance \( 73,800 \) 73,800
Requirements 3. Prepare the balance sheet as of July 31, 2018.
Step-by-Step Solution
VerifiedThe assets are the economic resources that help in generating some income in the future and the total balance sheet is $67,700
The assets are defined as the economic resources which are owned by the business or individuals and help to generate income in the future.
Sheila Sanchez, Registered Dietician | |||
Balance Sheet | |||
July 31, 2018 | |||
Assets | Amount ($) | Liabilities | Amount ($) |
Cash | $38,000 | Accounts Payable | $3,000 |
Accounts Receivables | $9,000 | Unearned Revenue | $3,912 |
Office Supplies | $2,300 | Notes Payable | $31,000 |
Prepaid Insurance | $2,400 |
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|
Equipment | $16,000 | Stockholders’ Equity |
|
|
| Common stock | $18,000 |
|
| Retained Earnings | $11,788 |
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|
|
|
Total Assets | $67,700 | Total Liabilities and stockholders’ Equity | $67,700 |