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PROBLEM 2.5A Preparing a Balance Sheet Erects of a change in HERE COME THE CLOWNS! is the name of a traveling circus. The ledger accounts of the bust ness at June 30, current year, are listed here in alphabetical order. $216,000 Accounts Payable....... $ 31.320 Notes Payable..... 11.400 Accounts Receivable ...... 8,940 Notes Receivable .. 226,872 Props and Equipment ... 107.496 Cages 29.556 32.676 Retained Earnings ... Capital Stock 360,000 Salaries Payable .. 11.700 Cash Tents ........... 75.600 Costumes 37.800 Trucks & Wagons .... 127,008 Animals Instructions Prepare a balance sheet by using these items and computing the amount of Cash at June 30, current year. Organize your balance sheet similar to the one illustrated in Exhibit 2-10. Include a proper balance sheet heading. b. Assume that late in the evening of June 30, after your balance sheet had been prepared, a fire destroyed one of the tents, which had cost $17.160. The tent was not insured. Explain what changes would be required in your June 30 balance sheet to reflect the loss of this asset EXHIBIT 2-10 Balance Sheet, Jan. 31 OVERNIGHT AUTO SERVICE BALANCE SHEET JANUARY 31, 2018 Assets Liabilities & Owners' Equity Cash ........... Accounts Receivable .... Tools and Equipment... Building Land $ 16,600 1,200 12,000 36,000 52,000 $ 30,000 7,000 Expenses reduce assets and owners' equity Liabilities: Notes Payable....... Accounts Payable.... Total liabilities ..... Owners' equity: Capital Stock ........ Retained Earnings ... Total $ 37.000 $ 80,000 800 Total $117,800 80.800 $117.800 Notice that the pynenses of $1400 200

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