Accounting information

Dr Fang (to be used in the workshop in week 1)
Month-end balance sheet amounts for the dental practice of Dr Fang, a local dentist, for three consecutive months are presented below. The information is complete except for the balance in the owners’ equity account.

Cash
Accounts receivable
Prepaid insurance
Surgery equipment
Building
Land
Accounts payable
Wages payable
Mortgage payable
Owners’ Equity

31 October
$
9 100
16 100
700
29 800
81 000
33 000
10 100
5 100
34 700
?

30 November
$
3 900
16 500
800
29 700
80 800
33 000
3 100
4 100
34 300
?

31 December
$
3 000
8 050
600
38 300
80 600
33 000
3 000
4 800
33 900
?

Required a b

Determine the balance of Dr Fang’s equity at the end of each month.
Prepare a Balance Sheet for the business at the end of December.

Additional Problem
ABC and XYZ Companies
ABC Company and XYZ Company conduct the same type of business. Both were recently formed; thus the Balance Sheet figures for assets can be assumed to be at current market valuation. The Balance Sheet of the two companies at 30 June 2006 were as follows: ABC COMPANY
XYZ COMPANY
Balance Sheet
Balance Sheet as at 30 June 2006 as at 30 June 2006
_____________________________________________________________________

Assets

$

$

$

$

Current Assets
Cash at bank
Accounts receivable
Total Current Assets
Non-current Assets
Office equipment
Land
Building
Total Non-current Assets
Total Assets
Liabilities
Current Liabilities
Accounts payable
Unsecured loan payable
Total Current Liabilities

2 400
4 800

12 000
24 000
7 200

6 000
18 000
30 000

36 000
600
3 600
6 000

54 000
61 200

21 600
31 200

10 200
46 200

4 800
7 200
52 800

12 000

----

----

Total Liabilities

52 800

12 000

Net Assets
Owner’s Equity

8 400

34 200

Capital
Total Owners’ Equity

8 400
8 400

34 200
34 200

Non-current Liabilities