Question

Wolfpack Construction has the following account balances at the end of the year.Equipment $25,500Accounts payable 2,900Salaries expense 32,500Common stock 10,000Land 17,500Notes payable 19,500Service revenue 38,500Cash 5,900Retained earnings ?Required:Prepare a balance sheet for Wolfpack Construction.

Answer 1

Total Assets $48,900

Total liabilities and stockholders' Equity $48,900

Step-by-step explanation:

Preparation for the balance sheet pf Wolfpack Construction.

WOLFPACK CONSTRUCTION

Balance Sheet

December 31

ASSETS LIABILITIES

Cash $5,900 Accounts payable $2,900

Land $17,500 Notes payable $19,500

Equipment $25,500

Total Assets $48,900

($5,900+$17,500+25,500)

Total liabilities $22,400

($2,900+$19,500)

STOCKHOLDER'S EQUITY

Common stock $10,000

Retained earnings $16,500

Total stockholders' equity $26,500

Total Assets $48,900

Total liabilities and stockholders' Equity $48,900($22,400+$26,500)

Calculation for Retained earnings

Using this formula

Retained earnings= Total assets - Total liabilities - Common stock

Let plug in the formula

Retained earnings= $48,900-$22,400-$10,000

Retained earnings= $16,500

Therefore Total Assets will be $48,900 while

Total liabilities and stockholders' Equity will be $48,900