CHAPTER T/THE BALANCE SHEETded all items she13. Following is a list of items Mary Wong has presented toaccountant in order to have a balance sheet prepared forbusiness. Wong Dance Studio, Mary bas included all itenfelt were importantCash in Business Bank Account $1800Personal Bank Account $2500Accounts Receivable $1500Accounts Payable $500Personal Car Loan $5000House and Lot $45000Dance Studio Building (Cost) $30000Dance Studio Building (Current Market Price)$35000Land $20000Personal Car $8000Mortgage on Dance Studio $38000Mortgage on House $32000Studio Equipment $3100Bank Loan on Studio Equipment $1600Personal Property $6600(a) Prepare a balance sheet for Wong Dance Studio onDecember 31, 19.(b) Explain why all the items listed above were not included inthe balance sheet you just prepared. Refer to the GAAP thatinfluenced your decision.(c) Which GAAP was applied to determine the value of thedance studio building on the balance sheet?(d) Using the data and concepts from (a), (b), and (c), prepare apersonal balance sheet for Mary on the same date.

Accepted Solution

I’m pretty sure the correct answer is A.