Chapter t/the balance sheet
ded all items she
13. following is a list of items mary wong has presented to
accountant in order to have a balance sheet prepared for
business. wong dance studio, mary bas included all iten
felt were important
cash in business bank account $1800
personal bank account $2500
accounts receivable $1500
accounts payable $500
personal car loan $5000
house and lot $45000
dance studio building (cost) $3
dance studio building (current market price)$35000
land $2
personal car $8000
mortgage on dance studio $38000
mortgage on house $32000
studio equipment $3100
bank loan on studio equipment $1600
personal property $6600
(a) prepare a balance sheet for wong dance studio on
december 31, 19.
(b) explain why all the items listed above were not included in
the balance sheet you just prepared. refer to the gaap that
influenced your decision.
(c) which gaap was applied to determine the value of the
dance studio building on the balance sheet?
(d) using the data and concepts from (a), (b), and (c), prepare a
personal balance sheet for mary on the same date.