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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Use the following financial information to prepare a balance sheet as of December 31, 2016. for Keystone Auto Repair, a sole proprietorship owned by Blake Williams: cash. $5,200: accounts receivable. $2,800; merchandise inventory. $2,700; prepaid salary. $235; supplies. $3,900; land. $35,000; building. $74.000; fixtures. $1,200: tow truck. $33,600; tools and equipment. $45.000; accounts payable. $6,800; notes payable. $17,600; taxes payable. $3,540; mortgage payable, $51,000; Blake Williams, capital. $124,695.

To determine

The balance sheet of Keystone Auto Repair for December 31, if cash account are $5,200, accounts receivables are $2,800, merchandise inventory is $2,700, prepaid salary is $235, supplies are $3,900, land is $35,000, building is $74,000, fixtures are $1,200, tow trucks are $33,600, tools and equipment are $45,000, accounts payables are $6,800, notes payables are $17,600, tax payable is $3,540, mortgage payable is $51,000 and Black Williams capital is $124,695.

Explanation

Given Information:

The cash account is $5,200, accounts receivables are $2,800, merchandise inventory is $2,700, prepaid salary is $235, supplies are $3,900, land is $35,000, building is $74,000, fixtures are $1,200, tow trucks are $33,600, tools and equipment are $45,000, accounts payables are $6,800, notes payables are $17,600, tax payable is $3,540, mortgage payable is $51,000 and Black Williams capital is $124,695.

Formula used:

Follow the steps to prepare a balance sheet:

Step 1: At the top of the page, write the name of the company, type of sheet and date of preparation in the center of the page.

Step 2: Prepare a section labeled as ASSETS and list three heads as all Current Assets, Property, Plant and Equipment and Investments and Other Assets.

Step 3: Add the above three heads to obtain the Total Assets.

Step 4: Double underline to Total Assets.

Step 5: Name a section as Liabilities and Owner’s Equity and make two sub-heads as Current Liabilities and Long-Term Liabilities.

Step 6: Add the two heads of liabilities to obtain the Total Liabilities.

Step 7: Total the Owner’s or Stockholder’s Equity.

Step 8: Add the Total Liabilities and Owner’s Equity.

Step 9: Double underline Total Liabilities and Owner’s Equity.

Consider the provided information,

The cash account is $5,200, accounts receivables are $2,800, merchandise inventory is $2,700, prepaid salary is $235, supplies are $3,900, land is $35,000, building is $74,000, fixtures are $1,200, tow trucks are $33,600, tools and equipment are $45,000, accounts payables are $6,800, notes payables are $17,600, tax payable is $3,540, mortgage payable is $51,000 and Black Williams capital is $124,695.

Compute Total Current Assets by adding all the current assets as,

Total Current Assets=Cash+Accounts receivables+Merchandise inventory+Prepaid salary+Supplies=5,200+2,800+2,700+235+3,900=$14,835

Compute total of Property, Plant and Equipment by adding all Property, Plant and Equipment,

Total of Property, Plant and Equipment=Land+Building+Fixtures+Tow truck+Tools and equipment=35,000+74,000+1,200+33,600+45,000=$188,800

Compute Total Assets by adding the current assets and property, plant and equipment,

Total Assets=Total Current Assets+Total of Property, Plant and Equipment

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Sect-15.I P-8RESect-15.I P-9RESect-15.I P-10RESect-15.I P-11RESect-15.I P-12RESect-15.I P-13RESect-15.I P-14RESect-15.I P-15RESect-15.I P-16RESect-15.I P-17RESect-15.I P-18RESect-15.I P-19RESect-15.I P-20RESect-15.I P-21RESect-15.I P-22RESect-15.I P-23RESect-15.I P-24RESect-15.I P-25RESect-15.I P-26RESect-15.I P-27RESect-15.I P-28RESect-15.I P-29RESect-15.I P-30RESect-15.I P-31RESect-15.I P-32RESect-15.I P-33RESect-15.I P-34RESect-15.I P-35RESect-15.II P-4TIESect-15.II P-5TIESect-15.II P-6TIESect-15.II P-1RESect-15.II P-2RESect-15.II P-3RESect-15.II P-4RESect-15.II P-5RESect-15.II P-6RESect-15.II P-7RESect-15.II P-8RESect-15.II P-9RESect-15.II P-10RESect-15.II P-11RESect-15.II P-12RESect-15.II P-13RESect-15.II P-14RESect-15.II P-15RESect-15.III P-7TIESect-15.III P-8TIESect-15.III P-1RESect-15.III P-2RESect-15.III P-3RESect-15.III P-4RESect-15.III P-5RESect-15.III P-6RESect-15.III P-7RESect-15.III P-8RESect-15.III P-9RESect-15.III P-10RESect-15.III P-11RESect-15.III P-12RESect-15.III P-13RESect-15.III P-14RESect-15.III P-15RESect-15.III P-16RESect-15.III P-17RESect-15.III P-18RESect-15.III P-19RESect-15.III P-20RESect-15.III P-21RESect-15.III P-22RESect-15.III P-23RESect-15.III P-24RESect-15.III P-25RESect-15.III P-26RESect-15.III P-27RESect-15.III P-28RESect-15.III P-29RESect-15.III P-30RESect-15.III P-31RESect-15.III P-32RESect-15.III P-33RECh-15 P-1CRCh-15 P-2CRCh-15 P-3CRCh-15 P-4CRCh-15 P-5CRCh-15 P-6CRCh-15 P-7CRCh-15 P-8CRCh-15 P-9CRCh-15 P-10CRCh-15 P-11CRCh-15 P-12CRCh-15 P-13CRCh-15 P-14CRCh-15 P-1ATCh-15 P-2ATCh-15 P-3ATCh-15 P-4ATCh-15 P-5ATCh-15 P-6ATCh-15 P-7ATCh-15 P-8ATCh-15 P-9ATCh-15 P-10ATCh-15 P-11ATCh-15 P-12ATCh-15 P-13ATCh-15 P-14ATCh-15 P-15ATCh-15 P-16ATCh-15 P-17ATCh-15 P-18ATCh-15 P-19ATCh-15 P-20ATCh-15 P-21ATCh-15 P-22ATCh-15 P-23ATCh-15 P-24AT

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