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.

Transcribed Image Text:

Accounts Payable Accounts Receivable Animals Cages . . Capital Stock. Cash. . Costumes 26,100 7,450 189,060 24,630 310,000 Notes Payable Notes Receivable Props and Equipment Retained Earnings .. Salaries Payable Tents Trucks & Wagons . $180,000 9,500 89,580 27,230 9,750 63,000 105,840 . - 31,500