Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, year 1. Equipment $47,040 Buildings $600,000 Land 510,000 Capital stock 162,000 Accounts payable 65,760 Cash 37,680 Accounts receivable 12,720 Furnishings 70,440 Salaries payable 40,200 Snowmobiles 18,480 Interest payable 14,400 Notes payable 744,000 Retained earnings ? Required: a-1. Compute the amount to be shown for retained earnings. a-2. Prepare a balance sheet at December 31, year 1 b. Assume that no payment is due on the notes payable until year 3. Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1?
Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, year 1. Equipment $47,040 Buildings $600,000 Land 510,000 Capital stock 162,000 Accounts payable 65,760 Cash 37,680 Accounts receivable 12,720 Furnishings 70,440 Salaries payable 40,200 Snowmobiles 18,480 Interest payable 14,400 Notes payable 744,000 Retained earnings ? Required: a-1. Compute the amount to be shown for retained earnings. a-2. Prepare a balance sheet at December 31, year 1 b. Assume that no payment is due on the notes payable until year 3. Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 2PA: Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and...
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Listed in random order are the items to be included in the
| Equipment | $47,040 | Buildings | $600,000 | ||
| Land | 510,000 | Capital stock | 162,000 | ||
| Accounts payable | 65,760 | Cash | 37,680 | ||
| 12,720 | Furnishings | 70,440 | |||
| Salaries payable | 40,200 | Snowmobiles | 18,480 | ||
| Interest payable | 14,400 | Notes payable | 744,000 | ||
| ? | |||||
Required:
a-1. Compute the amount to be shown for retained earnings.
a-2. Prepare a balance sheet at December 31, year 1
b. Assume that no payment is due on the notes payable until year 3. Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1?
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