the assets and liabilities of rockys day spa on december 31 and its revenue and expenses for the year are…

the assets and liabilities of rockys day spa on december 31 and its revenue and expenses for the year are listed below. the capital of the owner was $65,000 on january 1. the owner invested an additional $10,000 during the year.\n\naccounts\tamounts\taccounts\tamounts\naccounts payable\t$ 4,375\tspa operating expense\t$23,760\naccounts receivable\t8,490\toffice expense\t2,470\ncash\t???\tspa supplies\t9,230\nfees earned\t98,435\twages expense\t26,580\nspa furniture and equipment\t56,000\tdrawing\t38,170\ncomputers\t2,130\n\nrequired:\nprepare a balance - sheet for the year ended december 31. refer to the lists of accounts, labels, and amount descriptions for the exact wording of the answer choices for text entries. be sure to complete the statement heading.

the assets and liabilities of rockys day spa on december 31 and its revenue and expenses for the year are listed below. the capital of the owner was $65,000 on january 1. the owner invested an additional $10,000 during the year.\n\naccounts\tamounts\taccounts\tamounts\naccounts payable\t$ 4,375\tspa operating expense\t$23,760\naccounts receivable\t8,490\toffice expense\t2,470\ncash\t???\tspa supplies\t9,230\nfees earned\t98,435\twages expense\t26,580\nspa furniture and equipment\t56,000\tdrawing\t38,170\ncomputers\t2,130\n\nrequired:\nprepare a balance - sheet for the year ended december 31. refer to the lists of accounts, labels, and amount descriptions for the exact wording of the answer choices for text entries. be sure to complete the statement heading.

Answer

Explanation:

Step1: Calculate net income

Net income = Fees earned - (Spa operating expense + Office expense+Wages expense) = 98435-(23760 + 2470+26580) = 98435 - 52810=45625

Step2: Calculate ending owner's capital

Beginning owner's capital = 65000, Additional investment = 10000, Drawing = 38170 Ending owner's capital=Beginning owner's capital+Additional investment + Net income - Drawing = 65000+10000 + 45625-38170 = 82455

Step3: Calculate total assets

Total assets = Accounts receivable+Cash+Spa furniture and equipment+Computers+Spa supplies We need to find Cash. Using the accounting equation Assets = Liabilities + Owner's equity. First, find total liabilities and owner's equity. Total liabilities = Accounts payable = 4375 Total liabilities and owner's equity = 4375+82455 = 86830 Let Cash be $x$. Then $x+6490 + 56000+2130+9230=86830$ $x+73850 = 86830$ $x=86830 - 73850=12980$ Total assets = 6490+12980+56000+2130+9230 = 86830

Balance Sheet for Rocky's Day Spa December 31

Assets Amount Liabilities and Owner's Equity Amount
Accounts receivable 6490 Accounts payable 4375
Cash 12980 Owner's capital 82455
Spa furniture and equipment 56000
Computers 2130
Spa supplies 9230
Total assets 86830 Total liabilities and owner's equity 86830

Answer:

Balance Sheet for Rocky's Day Spa December 31

Assets Amount Liabilities and Owner's Equity Amount
Accounts receivable 6490 Accounts payable 4375
Cash 12980 Owner's capital 82455
Spa furniture and equipment 56000
Computers 2130
Spa supplies 9230
Total assets 86830 Total liabilities and owner's equity 86830