2. Listed below are selected account balances for Bushing Company for June 30: A

Question

2. Listed below are selected account balances for Bushing Company for June 30:

Accounts payable $29,000
Accounts receivable 11,300
Accumulated depreciation 19,500
Buildings 35,000

Cash 31,000
Contributed capital 30,000
Cost of goods sold 14,600
Equipment 45,000
Interest payable 12,000
Land 40,000
Merchandise inventory 52,400
Notes payable, current portion 13,500
Notes payable, long term 33,500
Prepaid insurance 4,000
Retained earnings 81,100
Supplies on hand 3,900
Trademarks 6,000
Wages expense 22,500
Wages payable 10,000

Please calculate and enter your answers for the following totals. You should show your calculations:
(a) Current assets
(b) Current Liabilities
(c) Property, plant, and equipment
(d) Total assets
(e) Long-term liabilities
(f) Total liabilities
(g) Total stockholders’ equity
(h) Total liabilities and stockholders’ equity

Explanation / Answer

Easiest way is to create the balance sheet:

Assets
...Current
.....Accounts Receivable....11,300
.....Cash.......................31,000
.....Supplies...................3,900
.....Prepaid Insurance........4,000
.....Inventory..................52,400
.....Total.......................102,600 (a)
...Property, Plant, Equipment
.....Buildings...................35,000
.....Equipment.................45,000
.....Land........................40,000
.....Acc. Depreciation........-19,500
.....Total........................100,500 (c)
...Trademarks..................6,000
...Total Assets..................209,100 (d)
Liabilities
...Current
.....Accounts Payable..........29,000
.....Notes Payable (curr)......13,500
.....Interest Pay................12,000
.....Wages Payable.............10,000
.....Total.........................64,500 (b)
...Long Term
.....Notes Payable (long).......33,500
.....Total..........................33,500 (e)
...Total Liabilities...............98,000 (f)
Stockholder's Equity
...Retained Earnings.............81,100
...Contributed Capital...........30,000
...Total.............................111,100 (g)
Total Liab & SE....................209,100 (h)

COGS & Wages Expense are Income Statement accounts and would not be on a balance sheet.

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