Q3SE - Horngren'S Financial And Managerial Accounting

Question

Refer to the data in Short Exercise S4-1. Prepare Dalton’s unclassified balance sheet at December 31, 2018. Use the account form.

Step-by-Step Solution

Answer

DALTON HAIR STYLISTS
Balance Sheet
December 31, 2018
Assets	Liabilities
Cash	$1,300	Accounts Payable	$400
Office Supplies	1,800	Interest Payable	500
Accounts Receivable	1,500	Notes Payable	3,100
Equipment	20,900	Total Liabilities	4,000
Less: Accumulated Depreciation- Equipment	2200	Stockholders’ Equity
		Common Stock	16,150
		Retained Earnings	3,150
		Total Stockholders’ Equity	19,300
Total Assets	$23,300	Total Liabilities and Stockholders’ Equity	$23,300

Step 1: Explanation of balance sheet

Balance sheet indicates the balances of assets, liabilities, and owners’ equity for the particular accounting period.

Step 2: Details of balance sheet

In the balance sheet, total assets equal $23,300, total liabilities equal $4,000, and total stockholders’ equity equal $19,300.