Q 4:
Assets
|
||
current assets
|
||
Cash
|
40,000
|
|
Accounts receivable
|
120,000
|
|
Inventory
|
A
|
|
Total current assets
|
ــــــــــــــ
|
235,000
|
Property,
Plant, and Equipment
|
||
Total Property, Plant, and Equipment
|
B
|
|
ــــــــــــــ
|
||
Total assets
|
400,000
|
|
Liabilities and Owners' equity
|
||
Current
liabilities
|
||
account
payable
|
32,000
|
|
Total current liabilities
|
ــــــــــــــ
|
32,000
|
long term
liabilities
|
||
notes
payable
|
50,000
|
|
Total long term liabilities
|
ــــــــــــــ
|
50,000
|
Owners'
equity
|
||
common
stock
|
100,00
|
|
retained
earnings
|
C
|
|
Total Owners' equity
|
ــــــــــــــ
|
D
|
ــــــــــــــ
|
||
Total Liabilities and Owners'
equity
|
F
|
40,000 + 120,000 + A = 235,000
160,000 + A = 235,000
A = 235,000 – 160,000
A = 75,000
235,000 + B = 400,000
B = 400,000 – 235,000
B= 165,000
Total assets = Total
Liabilities and Owners' equity
400,000 = F
32,000 + 50,000 + D = F
32,000 + 50,000 + D = 400,000
82,000 + D = 400,000
D = 400,000 – 82,000
D = 318,000
100,000 + C = D
100,000 + C = 318,000
C = 318000 – 100,000
C= 218,000
