George’s Pizzeria has the following information as of December 31, 2012:cash, $2,000; pizza ovens, $25,000; furniture, $12,500; accounts payable,$3,500; notes payable, $12,500; accumulated depreciation, $10,000; wagespayable, $1,500; taxes payable, $2,500; and equipment loan, $18,000.Construct a balance sheet for George. Do you think he has a problem withhis current balance sheet? If so, what is it?

George’s Pizzeria has the following information as of December 31, 2012:cash, $2,000; pizza ovens, $25,000; furniture, $12,500; accounts payable,$3,500; notes payable, $12,500; accumulated depreciation, $10,000; wagespayable, $1,500; taxes payable, $2,500; and equipment loan, $18,000.Construct a balance sheet for George. Do you think he has a problem withhis current balance sheet? If so, what is it?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...

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Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
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