Question

The following financial data are for the dental practice of Dr. Donna Wells when she began operations in July.
1. Owes $21,000 to the Allen Equipment Company.
2. Has cash balance of $15,500.
3. Has dental supplies of $5,650.
4. Owes $6,180 to Contemporary Furniture Supply.
5. Has dental equipment of $28,550.
6. Has office furniture of $10,000.
A) Determine the amounts that would appear in Dr. Wells' balance sheet.

Answer 1

Answer:

Explanation:

Current Assets: $21,150

Non current assets ; $38,550

Liabilities : $27,180.

Please note that the loan agreement is required to classify the loans into either current or non current liabilities. As this is not stated in the question, they are better classified as non current liabilities.