Question

Question:Preparing financial statements from the trial balance and calculating the debt ratio

The trial balance as of July 31, 2018, for Sara Simon, Registered Dietician, is presented below:

Account Title Debit Credit

Office Supplies 2,300

Cash 38,000

Accounts Receivable 9,000

Prepaid Insurance 2,400

Equipment 16,000

Accounts Payable 3,000

Unearned Revenue 3,912

Notes Payable 31,000

Common Stock 18,000

Dividends 2,800

Salaries Expense 1,700

Rent Expense 1,100

Utilities Expense 500

Service Revenue 17,888

Total Balance \( 73,800 \) 73,800

Requirements 3. Prepare the balance sheet as of July 31, 2018.

Short answer

The assets are the economic resources that help in generating some income in the future and the total balance sheet is $67,700

Step-by-step solution

Step-by-step SolutionStep 1: Definition of Assets

The assets are defined as the economic resources which are owned by the business or individuals and help to generate income in the future.

Preparation of statement of retained earnings

Sheila Sanchez, Registered Dietician
Balance Sheet
July 31, 2018
Assets	Amount ($)	Liabilities	Amount ($)
Cash	$38,000	Accounts Payable	$3,000
Accounts Receivables	$9,000	Unearned Revenue	$3,912
Office Supplies	$2,300	Notes Payable	$31,000
Prepaid Insurance	$2,400
Equipment	$16,000	Stockholders’ Equity
		Common stock	$18,000
		Retained Earnings	$11,788
Total Assets	$67,700	Total Liabilities and stockholders’ Equity	$67,700