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Account Title Debits Credits Cash 77,000 Investments 142,000 Accounts receivable

ID: 2605764 • Letter: A

Question

Account Title Debits Credits   Cash 77,000   Investments 142,000   Accounts receivable 76,000   Inventories 216,000   Prepaid insurance 6,000   Land 122,000   Buildings 436,000   Accumulated depreciation—buildings 116,000   Equipment 126,000   Accumulated depreciation—equipment 76,000   Patents (net of amortization) 26,000   Accounts payable 107,000   Notes payable 178,000   Interest payable 36,000   Bonds payable 256,000   Common stock 348,000   Retained earnings 110,000      Totals 1,227,000 1,227,000
I am doing a Balance Sheet for this company but can not figure the marketable securities or the liabilities and shareholders equity parts to this balance sheet. Every answer I come up withis wrong. Getting very frustrated on hiw to prepare this. could someone give me examples on how to figure these out please and thank you Account Title Debits Credits   Cash 77,000   Investments 142,000   Accounts receivable 76,000   Inventories 216,000   Prepaid insurance 6,000   Land 122,000   Buildings 436,000   Accumulated depreciation—buildings 116,000   Equipment 126,000   Accumulated depreciation—equipment 76,000   Patents (net of amortization) 26,000   Accounts payable 107,000   Notes payable 178,000   Interest payable 36,000   Bonds payable 256,000   Common stock 348,000   Retained earnings 110,000      Totals 1,227,000 1,227,000
I am doing a Balance Sheet for this company but can not figure the marketable securities or the liabilities and shareholders equity parts to this balance sheet. Every answer I come up withis wrong. Getting very frustrated on hiw to prepare this. could someone give me examples on how to figure these out please and thank you

Explanation / Answer

The balance sheet in this case can be prepared as follows:

Equity and liabilities

Shareholder's funds

Common stock. $348,000

Retained earnings. $110,000

Non current liabilities

Bonds payable. $256,000

Current liabilities

Accounts payable. $107,000

Notes payable. $178,000

Interest payable. $36,000

Total. $1,035,000

Non current assets

Property, plant and equipment (net)

Land. $122,000

Building. $320,000

Equipment. $50,000

Intangible assets

Patents. $26,000

Current assets

Cash. $77,000

Investment. $142,000

Accounts receivable. $76,000

Inventories. $216,000

Prepaid insurance. $6,000

Total. $1,035,000

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