Question

Prepare a balance sheet in proper format for the company as of December 31st based on the following accounts. Answer questions 8 through 10 based on this balance sheet.

Answer 1

To prepare a balance sheet, include assets, liabilities, and owner's equity. Proper format includes sections for current and long-term assets, current and long-term liabilities, and owner's equity. The balance sheet is a financial statement that shows a company's financial position at a specific point in time.

Step-by-step explanation:

To prepare a balance sheet, we need to include assets, liabilities, and owner's equity. Here is an example of a proper format for a balance sheet:

Company Name
Balance Sheet
As of December 31st

Assets
Current Assets:
- Cash and cash equivalents
- Accounts receivable
- Inventory
- Prepaid expenses

Long-term Assets:
- Property, plant, and equipment
- Investments
- Intangible assets

Total Assets

Liabilities
Current Liabilities:
- Accounts payable
- Accrued expenses
- Short-term debt

Long-term Liabilities:
- Long-term debt

Total Liabilities

Owner's Equity
- Retained earnings
- Common stock

Total Liabilities and Owner's Equity

Answer 2

Total liabilities = $25,000

Step-by-step explanation:

Missing information;

Accounts Payable = $5,000

Long-term Notes Receivable = $10,000

Accounts Receivable = $15,000

Accrued Expenses = $3,000

Cash = $10,000

Short-term Notes Payable = $7,000

Retained Earnings = $2,000

Accumulated depreciation = $2,000

Prepaid Expenses = $3,000

Capital Stock = $8,000

Supplies = $7,000

Find:

Total liabilities

Computation:

Total liabilities = Accounts Payable + Capital Stock + Short-term Notes Payable + Accrued Expenses + Retained Earnings

Total liabilities = 5000 + 8000 + 7000 + 3000 + 2000

Total liabilities = $25,000