Question

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $194,500 at April 1, the beginning of the current year. Mr. Thompson invested an additional $14,700 in the business during the year. Accounts Amount Accounts Amount Accounts payable $1200 Miscellaneous expense $550 Accounts receivable 9,863 Office expense 600 Cash 32,277 Supplies 1,670 Fees earned 78,060 Wages expense 34,240 Land 47,520 Drawing 6,300 Building 155,440 Required: Prepare a balance sheet for Thompson Computer Services for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries.

Answer 1

Answer:

                                      Thompson Computer Services

                                       Balance Sheet

                                       As at 31 March XXXX      

Explanation:

Non-Current Assets                       Amount in $

Land                                                        47,520

Building                                                  155,440

                         

Current Assets

Accounts Receivable                              9,863

Cash                                                        32,277  

Total Assets                                          245,100

Capital & Liabilities

Capital                                                    209,200

Drawings                          Note 1               (6,300)

Net Profit                         Note 2              41,000          

Current Liabilities

Accounts Payable                                         1,200

Total Capital & Liabilities                           245,100

Note 1

Drawings are deducted from capital as they reduce capital and amount is taken away from business

Note 2

Net profit is calculated as below

Fees Earned-miscellaneous expenses-office expense-supplies-wages expense=$41,000