40PGB_3
Question
Question: Preparing financial statements from the trial balance and calculating the debt ratio
Preparing financial statements from the trial balance and calculating the debt ratio
Account Title Debit Credit
Office Supplies 1,400
Cash 32,000
Accounts Receivable 9,100
Prepaid Insurance 2,600
Equipment 24,000
Accounts Payable 3,400
Unearned Revenue 1,296
Notes Payable 34,000
Common Stock 20,000
Dividends 3,000
Salaries Expense 1,600
Rent Expense 700
Utilities Expense 100
Service Revenue 15,804
Total Balance \( 74,500 \) 74,500
Requirements Prepare the balance sheet as of July 31, 2018.
Step-by-Step Solution
VerifiedThe balance sheet shows assets, liabilities and stockholders’ equity of the business and the total of balance sheet is $69,100
The balance sheet is defined as the financial statement which reports the financial position of the business
Sheila Sanchez, Registered Dietician | |||
Balance Sheet | |||
July 31, 2018 | |||
Assets | Amount ($) | Liabilities | Amount ($) |
Cash | $32,000 | Accounts Payable | $3,400 |
Accounts Receivables | $9,100 | Unearned Revenue | $1,296 |
Office Supplies | $1,400 | Notes Payable | $34,000 |
Prepaid Insurance | $2,600 |
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Equipment | $24,000 | Stockholders’ Equity |
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| Common stock | $20,000 |
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| Retained Earnings | $10,404 |
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Total Assets | $69,100 | Total Liabilities and stockholders’ Equity | $69,100 |