The assets and liabilities of Rocky's Day Spa on December 31 and its revenue and expenses for

Question:

The assets and liabilities of Rocky's Day Spa on December 31 and its revenue and expenses for the year are listed below. The capital of the owner was $68,000 on January 1. The owner invested an additional $10,000 during the year.

Accounts Amounts Accounts Amounts $4,375 Accounts Payable Spa Operating Expense Office Expense $23,760 Accounts Receivab

Required:
Prepare a balance sheet for the year ended December 31. Refer to the lists of Accounts, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...