Prepare A Classified balance sheet, in report format, at June 30, 2020. READY HOSPITAL SUPPLIES ADJUSTED TRIAL BALANCE AS AT JUNE 30, 2020 ACCOUNT DEBIT CREDIT 1 Cash 127,000 2 A/c receivables 151,000 3 Allowance for bad debt 19,500 4 Prepaid insurance 48,000 5 Merchandise inventory 186,000 6 Store supplies 25,000 7 Prepaid rent 14,000 8 Furniture and fixtures 800,000 9 Accumulated depreciation-furniture & fixtures 320,000 10 Computer equipment 450,000 11 Accumulated depreciation-computer equipment 21,000 12 Interest payable 36,000 13 Accounts payable 133,500 14 Salaries payable 14,000 15 Unearned sales revenue 34,000 16 Portion of loan 90,000 17 Long term loan 270,000 18 Eva Ready Capital 898,500 19 Eva Ready Withdrawals 104,000 20 Sales revenue 1,091,000 21 Gain on computer equipment 14,000 22 Interest expense 36,000 23 Sales discount 7,000 24 Insurance expense 24,000 25 Salaries expense 179,000 26 Sales return & allowance 5,500 27 Cost of goods sold 404,500 28 Utilities expense 87,500 29 Rent expense 168,000 30 Depreciation expense- furniture 64,000 31 Depreciation expense- computer 21,000 32 Store supplies expenses 33,000 33 Bad debt expenses 7,000 Total $2,941,500 $2,941,500 READY HOSPITAL SUPPLIES INCOME STATEMENT AS AT JUNE 30, 2020 Particulars Amount Amount Sales Total Sales Revenue (1,043,000+48,000) 1,091,000 Less: Sales Discount -7,000 Less: Sales Return -5,500 Net Sales Revenue 1,078,500 Less: Cost of Goods Sold (403000+1500) -404,500 Gross Profit 674,000 Less: Operating Expense: Salaries Expense (165000+14000) 179,000 Insurance Expense (72000/6*2) 24,000 Rent (56000*3/4) 42,000 Utilities Expense 87,500 Depreciation Expense on Furniture (800,000-160,000)/10 64,000 Depreciation on Computer equipment (450,000*(1/5*2)*3/12) 45,000 Store supply Expense (58000-25000) 33,000 Bad Debt Expense (19500-12500) 7,000 -481,500 Operating Profit 192,500 Less: Interest Expense (27000+9000) -36,000 Add: Gain on Computer Equipment 14,000 -22,000 Net Income 170,500

Prepare A Classified balance sheet, in report format, at June 30, 2020. READY HOSPITAL SUPPLIES ADJUSTED TRIAL BALANCE AS AT JUNE 30, 2020 ACCOUNT DEBIT CREDIT 1 Cash 127,000 2 A/c receivables 151,000 3 Allowance for bad debt 19,500 4 Prepaid insurance 48,000 5 Merchandise inventory 186,000 6 Store supplies 25,000 7 Prepaid rent 14,000 8 Furniture and fixtures 800,000 9 Accumulated depreciation-furniture & fixtures 320,000 10 Computer equipment 450,000 11 Accumulated depreciation-computer equipment 21,000 12 Interest payable 36,000 13 Accounts payable 133,500 14 Salaries payable 14,000 15 Unearned sales revenue 34,000 16 Portion of loan 90,000 17 Long term loan 270,000 18 Eva Ready Capital 898,500 19 Eva Ready Withdrawals 104,000 20 Sales revenue 1,091,000 21 Gain on computer equipment 14,000 22 Interest expense 36,000 23 Sales discount 7,000 24 Insurance expense 24,000 25 Salaries expense 179,000 26 Sales return & allowance 5,500 27 Cost of goods sold 404,500 28 Utilities expense 87,500 29 Rent expense 168,000 30 Depreciation expense- furniture 64,000 31 Depreciation expense- computer 21,000 32 Store supplies expenses 33,000 33 Bad debt expenses 7,000 Total $2,941,500 $2,941,500 READY HOSPITAL SUPPLIES INCOME STATEMENT AS AT JUNE 30, 2020 Particulars Amount Amount Sales Total Sales Revenue (1,043,000+48,000) 1,091,000 Less: Sales Discount -7,000 Less: Sales Return -5,500 Net Sales Revenue 1,078,500 Less: Cost of Goods Sold (403000+1500) -404,500 Gross Profit 674,000 Less: Operating Expense: Salaries Expense (165000+14000) 179,000 Insurance Expense (72000/62) 24,000 Rent (560003/4) 42,000 Utilities Expense 87,500 Depreciation Expense on Furniture (800,000-160,000)/10 64,000 Depreciation on Computer equipment (450,000(1/52)*3/12) 45,000 Store supply Expense (58000-25000) 33,000 Bad Debt Expense (19500-12500) 7,000 -481,500 Operating Profit 192,500 Less: Interest Expense (27000+9000) -36,000 Add: Gain on Computer Equipment 14,000 -22,000 Net Income 170,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Prepare A Classified balance sheet, in report format, at June 30, 2020.

READY HOSPITAL SUPPLIES
ADJUSTED TRIAL BALANCE
AS AT JUNE 30, 2020
	ACCOUNT	DEBIT	CREDIT
1	Cash	127,000
2	A/c receivables	151,000
3	Allowance for bad debt		19,500
4	Prepaid insurance	48,000
5	Merchandise inventory	186,000
6	Store supplies	25,000
7	Prepaid rent	14,000
8	Furniture and fixtures	800,000
9	Accumulated depreciation-furniture & fixtures		320,000
10	Computer equipment	450,000
11	Accumulated depreciation-computer equipment		21,000
12	Interest payable		36,000
13	Accounts payable		133,500
14	Salaries payable		14,000
15	Unearned sales revenue		34,000
16	Portion of loan		90,000
17	Long term loan		270,000
18	Eva Ready Capital		898,500
19	Eva Ready Withdrawals	104,000
20	Sales revenue		1,091,000
21	Gain on computer equipment		14,000
22	Interest expense	36,000
23	Sales discount	7,000
24	Insurance expense	24,000
25	Salaries expense	179,000
26	Sales return & allowance	5,500
27	Cost of goods sold	404,500
28	Utilities expense	87,500
29	Rent expense	168,000
30	Depreciation expense- furniture	64,000
31	Depreciation expense- computer	21,000
32	Store supplies expenses	33,000
33	Bad debt expenses	7,000
Total	$2,941,500	$2,941,500

READY HOSPITAL SUPPLIES
INCOME STATEMENT
AS AT JUNE 30, 2020
Particulars	Amount	Amount
Sales
Total Sales Revenue (1,043,000+48,000)	1,091,000
Less: Sales Discount	-7,000
Less: Sales Return	-5,500
Net Sales Revenue		1,078,500
Less: Cost of Goods Sold (403000+1500)		-404,500
Gross Profit		674,000

Less: Operating Expense:
Salaries Expense (165000+14000)	179,000
Insurance Expense (72000/6*2)	24,000
Rent (56000*3/4)	42,000
Utilities Expense	87,500
Depreciation Expense on Furniture (800,000-160,000)/10	64,000
Depreciation on Computer equipment (450,000(1/52)*3/12)	45,000
Store supply Expense (58000-25000)	33,000
Bad Debt Expense (19500-12500)	7,000	-481,500
Operating Profit		192,500
Less: Interest Expense (27000+9000)	-36,000
Add: Gain on Computer Equipment	14,000	-22,000
Net Income		170,500

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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