Prepare a December 31 Balance Sheet in Proper Form for Surety

question 166

Essay

Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:
$\begin{array}{|l|r|}\hline \text { Commissions earned } & \$ 40,000 \\\hline \text { Accounts payable } & 3,500 \\\hline \text { Accounts receivable } & 5,000 \\\hline \text { Office equipment } & 10,000 \\\hline \text { Advertising expense } & 3,200 \\\hline \text { Cash } & 7,500 \\\hline \text { Land } & 35,000 \\\hline \text { Note payable } & 50,000 \\\hline \text { Office supplies } & 500 \\\hline \text { Salaries expense } & 12,000 \\\hline \text { Salaries payable } & 1,000 \\\hline \text { Building } & 100,000 \\\hline \text { Common stock } & 40,000 \\\hline \text { Retained earnings } & 63,500\\\hline\end{array}$

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Definitions:

Central Limit Theorem

The Central Limit Theorem is a statistical theory that states that the sampling distribution of the sample mean approaches a normal distribution, regardless of the population's distribution, given a large enough sample size.

Population

All members or elements under consideration in statistical studies make up this group.

Standard Error

A measure of the statistical accuracy of an estimate, calculated from the standard deviation of a sampling distribution.

Sample Size

The number of observations or replicates included in a statistical sample, crucial for the reliability and accuracy of the study or experiment.