Question

At December​ 31, 2018​, Diamond Corporation has cash of $55 ​million, accounts receivable of $25 ​million, and​ long-term assets of $$38 million. The company owes accounts payable of $22 million and has a​ long-term note payable of $29 million. Diamond has common stock of $27 million and retained earnings of $40 million. Prepare Diamond ​Corporation's balance sheet at December​ 31, 2018​, complete with its proper heading.

Answer 1

BALANCE SHEET AS ON DECEMBER 31, 2018

CURRENT LIABILITIES:

ACCOUNTS PAYABLE $22

LONG TERM LIABILITIES:

LONG TERM NOTE PAYABLE $29

STOCKHOLDERS EQUITY

COMMON STOCK $27

RETAINED EARNINGS $40

Total $118

ASSETS

CURRENT ASSETS

CASH $55

ACCOUNTS RECEIVABLE $25

LONG TERM ASSETS $38

Total $118