Answer:
Total assets $ 253,000
Total liabilities and shareholders’ equity $ 253,000
Step-by-step explanation:
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2016
Assets
Cash $ 40,000
Accounts receivable 80,000
Inventories 55,000
Less
Restricted Cash - $ 27000
Notes Receivable - $ 27000
Total Current Assets $ 121,000
Machinery $ 204,000
Less Accumulated Depreciation -102,000
Machinery (net) 102,000
Franchise (net) 30,000
Total assets $ 253,000
Liabilities and Shareholders’ Equity
Accounts payable $ 50,000
Note payable 43,000
Interest Payable 12000
Total Current Liabilities 105,000
Bonds payable 110,000
Total Liabilities 215,000
Shareholders’ equity 105,000
Less
Retained Earning - 42,000
Common Stock -25,000
Total liabilities and shareholders’ equity $ 253,000
As it is given in the Additional information.
1. Cash of $27,000 restricted amount to be used for repayment of the bonds payable is deducted from current liabilities.
2. The accumulated Depreciation is shown.
3. Notes receivable is deducted from accounts receivable.
4. Notes payable balance and accrued interest of $12,000 are shown separately.
5. Net income less dividends since inception of the company totals $42,000 is deducted as retained earnings.
6. The common stock issued is also deducted from liabilities.