HERE COME THE CLOWNS! Is the name of a traveling circus? The ledger accounts of the business at June 30, 2011, are listed here in alphabetical order:
Instructions a. Prepare a balance sheet by using these items and computing the amount of Cash at June 30, 2011. Organize your balance sheet similar to the one illustrated in Exhibit 2–10 . (After “Accounts Receivable,” you may list the remaining assets in any order.) Include a proper balance sheet heading. b. Assume that late in the evening of June 30, after your balance sheet had been prepared, a fire destroyed one of the tents, which had cost $14,300. The tent was not insured. Explain what changes would be required in your June 30 balance sheet to reflect the loss of thisasset.