Submission 1

Assignment Details Financial statements are the primary means of communicating financial information to users. It is important to have a firm understanding of the income statement, balance sheet, and statement of cash flows. Managers will make decisions daily that will have an effect on the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Managerial accounting reports use these same financial statements but also incorporate non-financial information that will assist internal users in making strategic and tactical decisions. For this reason, it is important for you to understand how decisions will affect the accounting equation. The following spreadsheet is for Manhattan Family Dentistry on January 1 of the current year. Complete the following balance sheet for Manhattan Family Dentistry on January 4 of the current year. MANHATTAN FAMILY DENTISTRY Balance Sheet January 1, 20__ Assets Liabilities & Stockholders' Equity Cash Accounts receivable.. Land Building Equipment.... $ 20,000 31,000 190,000 225,000 35.000 Liabilities: Accounts payable Total liabilities Owners' equity: Capital stock.... $ 45.000 $ 45,000 456.000 Total assets $501.000 Total liabilities and owners' equity S501.000 During the first few days of January, the following transactions occurred: Jan 2 Equipment was purchased for $38,000 on credit. The business collected $16,000 of its accounts receivable and paid $23,000 of its accounts payable. The business borrowed $60,000 from the bank, giving a note payable due in 90 days. Additional capital stock was issued in exchange for $27,000 cash. 2