Ask Experts Questions for FREE Help !
Ask
    marlin405's Avatar
    marlin405 Posts: 0, Reputation: 1
    New Member
     
    #1

    Sep 21, 2007, 09:04 AM
    How do I reflect the loss of an uninsured asset?
    I am supposed to assume that on June 30th after my balance sheet has been prepared, a fire destroyed one of my tents, which had cost $14,300. The tent was not insured. Explain what changes would be required in my June 30th balance shee to reflect the loss of this asset.

    As you can see I understand how to subtract it on the asset side. But I do not know what category to take it from on the Liability side. I'm assuming that he owned the tent so the only thing I can guess it would come out of is the Capital Stock. But it's not actual stock so that could be wrong.

    HERE COME THE CLOWNS!
    Balance Sheet
    June 30, 2007

    Assets Liabilities & Stockholders' Equity
    Cash $32,520 Liabilities:
    Notes receivable 9,500 Notes payable $180,000
    Accounts receivable 7,450 Accounts payable 26,100
    Animals 189,060 Salaries payable 9,750
    Cages 24,630 Total liabilities $215,850
    Costumes 31,500 Owners' equity:
    Props and equipment 89,580 Capital stock $310,000
    Tents 63,000 Retained earnings 27,230 337,230
    Trucks & wagons 105,840
    Total $ 553,080 Total $553,080

    b. Explain what changes would be required in your June 30 balance sheet to reflect
    The loss of an uninsured tent that cost $14,300.

Check out some similar questions!

Fixed asset or Intangible asset [ 4 Answers ]

Is the U.S. Treasury Note. A Fixed or Intangible Assets.

Does anyone know the law in Florida for uninsured motorist? [ 12 Answers ]

This is my story. I'll make it short. A couple of months ago, my daughter let her auto insurance lapse and it was cancelled. She also had some traffic tickets not paid, so her license is currently suspended until she pays them off. The neighbor asked my daughter if she could use her car to run...

My fault and I was uninsured [ 4 Answers ]

I was in a car accident in which it was my fault (technology). I pulled out tyring to make a left turn while someone was coming. I did not see the car do to "morning sun". Police came and an ambulance, both of us were taken to the hospital, neither on of us were seriously hurt. My car was...

I was in an accident and I was uninsured [ 10 Answers ]

I was in an accident with another car. No police were called, and we just exchanged information. Once I realized that my insurance had lapsed, I told the other driver and we agreed I'd get new insurance immediately and say the accident happened on a different day. I did that and reported it to...


View more questions Search
 

Add your answer here.