(Questions 4-7) Use the following information from a hotel’s balance sheet to solve the questions.ASSETSDec 31, 2019 ($)Current Assets: Cash 30,000 Marketable securities 50,000 Accounts receivable 100,000 Inventory 20,000Total Current Assets 200,000Investments 100,000Property & Equipment: Land 500,000 Building 5,000,000 Equipment 1,000,000 Less: Accumulated depreciation 1,600,000Net Property & Equipment?Total Assets ?LIABILITIES & OWNERS' EQUITY Current Liabilities: Accounts payable 60,000 Current maturities of Long-term debt 100,000 Dividends payable 30,000Total Current Liabilities 190,000Long-Term Liabilities: Long-term debt 4,000,000Total Long-term Liabilities 4,000,000Total Liabilities 4,190,000Owners' Equity: Capital Stock700,000 Retained Earnings ?Total Owners' Equity Total Liabilities and Owners' Equity What is the amount of “Retained Earnings” as of Dec 31, 2019?Group of answer choices$410,000$310,000$5,000,000$500,000

ASSETS Dec 31, 2019 ($) Current Assets: Cash 30,000 Marketable securities…

Answered: Use the following information from a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 11EA: For each of the following accounts, identify in which section of the classified balance sheet it...

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(Questions 4-7) Use the following information from a hotel’s balance sheet to solve the questions.

ASSETS	Dec 31, 2019 ($)
Current Assets:
Cash	30,000
Marketable securities	50,000
Accounts receivable	100,000
Inventory	20,000
Total Current Assets	200,000
Investments	100,000
Property & Equipment:
Land	500,000
Building	5,000,000
Equipment	1,000,000
Less: Accumulated depreciation	1,600,000
Net Property & Equipment	?
Total Assets	?
LIABILITIES & OWNERS' EQUITY
Current Liabilities:
Accounts payable	60,000
Current maturities of Long-term debt	100,000
Dividends payable	30,000
Total Current Liabilities	190,000
Long-Term Liabilities:
Long-term debt	4,000,000
Total Long-term Liabilities	4,000,000
Total Liabilities	4,190,000
Owners' Equity:
Capital Stock	700,000
Retained Earnings	?
Total Owners' Equity
Total Liabilities and Owners' Equity

What is the amount of “Retained Earnings” as of Dec 31, 2019?

Group of answer choices

$410,000

$310,000

$5,000,000

$500,000

Expert Solution

Working:

ASSETS	Dec 31, 2019 ($)
Current Assets:
Cash	30,000
Marketable securities	50,000
Accounts receivable	100,000
Inventory	20,000
Total Current Assets	200,000
Investments	100,000
Property & Equipment:
Land	500,000
Building	5,000,000
Equipment	1,000,000
Less: Accumulated depreciation	1,600,000
Net Property & Equipment	4900000
Total Assets	5200000

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