Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current liabilities Cash 2,000 Accounts payable 2,000 Accounts receivable 8,000 Notes payable 5,000 Inventory 7,000 Deferred revenue 2,000 Total current assets 17,000 Total current liabilities 9,000 Property and equipment Equipment 50,000 Long-term debt 50,000 Less accumulated depreciation -10,000 40000 Total liabilities 59,000 Total assets 74,000 Shareholders' Equity Common stock 10,000 Additional paid-in capital Retained earnings 2,000 3,000 15,000 Total liabilities and shareholders' equity 74,000

Balance Sheet December 31, 2020 LIABILITIES AND SHAREHOLDER'S ASSETS EQUITY Current assets Current liabilities Cash 2,000 Accounts payable 2,000 Accounts receivable 8,000 Notes payable 5,000 Inventory 7,000 Deferred revenue 2,000 Total current assets 17,000 Total current liabilities 9,000 Property and equipment Equipment 50,000 Long-term debt 50,000 Less accumulated depreciation -10,000 40000 Total liabilities 59,000 Total assets 74,000 Shareholders' Equity Common stock 10,000 Additional paid-in capital Retained earnings 2,000 3,000 15,000 Total liabilities and shareholders' equity 74,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 76E

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