Chapter 1, Problem 20AE

Types of business organizations and balance sheet preparation (Learning Objectives 3 & 6) 10-15 min.

The following are the balances of the assets, liabilities, and equity of Fitness Fanatics at March 31, 2018:

Cash.....................................	$15,000	Office Equipment...............	$10,300
Retained Earnings...............	12,300	Common Stock...................	6,000
Accounts Payable................	3,300	Note Payable.......................	5,000
Accounts Receivable ........	600	Supplies.............................	700

Requirements

1. 1. What type of business organization is Fitness Fanatics?
2. 2. Prepare the balance sheet of the business at March 31, 2018.
3. 3. What does the balance sheet report?