Concept Introduction:
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and
Balance Sheet: The Balance sheet is a summary of Assets, Liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classifies into Current Assets, Long Term Investments, Plant Assets and Intangible assets. And Liabilities are further classified into Current Liabilities and Long term liabilities.
To Calculate:
The missing amounts on balance sheets given.
Answer to Problem 44E
The missing amounts on balance sheets given are as follows:
Current Assets | (a) | $ 26,900 | $ 25,000 | |
Intangible assets | $ 10,400 | $ 9,200 | ||
Long Terms Investments | $ 19,200 | (f) | $ 22,200 | |
Property, Plant, and Equipment, Net | $ 85,700 | $ 92,800 | ||
Total Assets | $ 142,200 | (g) | $ 149,200 | |
Current Liabilities | $ 14,500 | $ 12,300 | ||
Long Terms Liabilities | (b) | $ 35,800 | $ 34,900 | |
Total Liabilities | $ 50,300 | (h) | $ 47,200 | |
Contributed Capital | (c) | $ 35,000 | (i) | $ 35,000 |
$ 56,900 | $ 67,000 | |||
Total | (d) | $ 91,900 | (j) | $ 102,000 |
Total Liabilities Stockholder's equity | (e) | $ 142,200 | $ 149,200 |
Explanation of Solution
The missing amounts on balance sheets given are calculated as follows:
Current Assets | (a) | $ 26,900 | $ 25,000 | |
(142200-10400-19200-85700) | ||||
Intangible assets | $ 10,400 | $ 9,200 | ||
Long Terms Investments | $ 19,200 | (f) | $ 22,200 | |
(149200-25000-9200-92800) | ||||
Property, Plant, and Equipment, Net | $ 85,700 | $ 92,800 | ||
Total Assets | $ 142,200 | (g) | $ 149,200 | |
Current Liabilities | $ 14,500 | $ 12,300 | ||
Long Terms Liabilities | (b) | $ 35,800 | $ 34,900 | |
(50300-14500) | ||||
Total Liabilities | $ 50,300 | (h) | $ 47,200 | |
(12300+34900) | ||||
Contributed Capital | (c) | $ 35,000 | (i) | $ 35,000 |
(91900-56900) | (102000-67000) | |||
Retained earnings | $ 56,900 | $ 67,000 | ||
Total Stockholder's equity | (d) | $ 91,900 | (j) | $ 102,000 |
(142200-50300) | (149200-47200) | |||
Total Liabilities Stockholder's equity | (e) | $ 142,200 | $ 149,200 | |
(= Total Assets) |
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Chapter 1 Solutions
Cornerstones of Financial Accounting
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