Question

The following information is available for Crane Company

Accounts receivable $3,300
Accounts payable 4,100
Interest payable 580
Salaries and wages expense 4,900
Notes payable 31,500
Common stock 50,400
Inventory 2,940
Cash $6,310
Supplies 3,880
Unearned service revenue 820
Service revenue 42,100
Salaries and wages payable 850
Depreciation expense 600
Equipment (net) 109,800
Using the information above, prepare a balance sheet as of December 31, 2022. (List assets in order of liquidity

Answer 1

To prepare the balance sheet for Crane Company as of December 31, 2022, categorize the given information into assets, liabilities, and equity. Use this information to create the balance sheet.

Step-by-step explanation:

To prepare the balance sheet for Crane Company as of December 31, 2022, we categorize the given information into assets, liabilities, and equity.

Assets (in order of liquidity):

• Cash: $6,310
• Accounts receivable: $3,300
• Inventory: $2,940
• Supplies: $3,880
• Equipment (net): $109,800

Liabilities:

• Accounts payable: $4,100
• Interest payable: $580
• Notes payable: $31,500
• Salaries and wages payable: $850

Equity:

• Common stock: $50,400
• Unearned service revenue: $820

Using this information, we can create the balance sheet for Crane Company as of December 31, 2022.

AssetsLiabilitiesEquityCashAccounts payableCommon stockAccounts receivableInterest payableUnearned service revenueInventoryNotes payableSuppliesSalaries and wages payableEquipment (net)

Answer 2

Crane Company

Balance Sheet

As of December 31, 2022:

Assets

Current Assets:

Cash $6,310

Accounts receivable 3,300

Supplies 3,880

Inventory 2,940

Total current assets $16,430

Long-term Assets:

Equipment (net) 109,800

Total assets $126,230

Liabilities and Equity

Current Liabilities:

Accounts payable 4,100

Interest payable 580

Salaries and wages payable 850

Unearned service revenue 820

Total current liabilities $6,350

Long-term Liabilities:

Notes payable 31,500

Total liabilities $37,850

Equity:

Common stock 50,400

Retained Earnings 37,980

Total equity $88,380

Total liabilities + equity $126,230

Step-by-step explanation:

a) Data and Calculations:

Trial Balance

Cash $6,310

Accounts receivable 3,300

Supplies 3,880

Inventory 2,940

Equipment (net) 109,800

Depreciation expense 600

Salaries & wages exp. 4,900

Accounts payable $4,100

Interest payable 580

Salaries and wages payable 850

Unearned service revenue 820

Notes payable 31,500

Common stock 50,400

Service revenue 42,100

Retained earnings 1,380

Totals $131,730 $131,730

Beginning Retained Earnings $1,380

Net income 36,600

Ending Retained earnings $37,980

Income Statement for the year ended December 31, 2022:

Service revenue $42,100

Depreciation expense 600

Salaries and wages expense 4,900

Total expenses $5,500

Net income $36,600