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# Steps to preparation of a balance sheet

#1 I need step-by-step help on solving this problem. I got the first answer. Cash \$90,000-\$12,400 (life ins policy)=\$77,600. The \$77,600+\$1,500 (overdraft) = \$79,100. correct?

I moved on to #2 and all I know is that (b) is from accounts payable. I didn't understand #2 really well. It seems that in (a) the debit balances are \$60,000, but the information says \$52,200. I don't know where the \$7,800 goes or how to calculate the answer.

#3 Line 3 does not make any sense. Please help. I assume the \$5,000 receivables goes on Accounts receivable (net) in first column. (second sentence) need help with that too.

#4 I am confused whether the investments go on the left or right column. I am confused about Franchises of \$9000. (credit or debit) also should it be affecting stockholders equity as well? please help with this.

#5 I am not sure if I have to take \$10,000 out of \$86,000 and subtract \$6,000 (should leave me \$4000). I'm lost as to what to do with the \$40,000. Should I subtract it from \$86,000? I am lost.

The only instructions were to prepare a balance sheet. but I think there is more to it than that. I feel like I am lost.