The Assets and Liabilities of Rocky's Day Spa at December

question 220

Essay

The assets and liabilities of Rocky's Day Spa at December 31 and expenses for the year are listed below. The stockholders' equity was $68,000 $48,000 in Common Stock and $20,000 in Retained Earnings) at January 1. The shareholders invested in an additional $10,000 of common stock during the year. Net income for the year is $45,625. $$\begin{array} { | l | l | l | l | } \hline \text { Accounts payable } & \$ 4,375 & \text { Spa operating expense } & \$ 23,760 \\\hline \text { Accounts receivable } & 8,490 & \text { Office expense } & 2,470 \\\hline \text { Cash } & ? ? ? & \text { Spa supplies } & 9,230 \\\hline \text { Fees earned } & 98,435 & \text { Wages expense } & 26,580 \\\hline \text { Spa furniture \& equipment } & 56,000 & \text { Dividends } & 38,170 \\\hline \text { Computers } & 2,130 & & \\\hline\end{array}$$ Prepare a balance sheet for Rocky's Day Spa for the year ended December 31.

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Definitions:

Personal Property

Any item that is movable and not fixed to real estate, including tangible items like cars, furniture, and electronic devices, as well as intangible items like stocks and bonds.

Real Property

Land and anything permanently attached to it, such as buildings, also known as real estate.

E Ink

A type of electronic paper display technology characterized by low power consumption and high readability in direct sunlight.

Intellectual Property

A legal concept which refers to creations of the mind for which exclusive rights are recognized, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce.