Problem 9-20 Supply missing balance sheet numbers LO 9-2, 9-3 The bookkeeper for
ID: 2459955 • Letter: P
Question
Problem 9-20 Supply missing balance sheet numbers LO 9-2, 9-3 The bookkeeper for Rakov's Country Music Bar left this incomplete balance sheet. Rakov's working capital is $92,000 and its debt to assets ratio is 50 percent. Complete the balance sheet by supplying the missing amounts. Assets Current assets Cash Accounts receivable Inventory Prepaid expenses $ 24,000 37,000 14,000 Total current assets Long-term assets Building Less: Accumulated depreciation (44,000) 219,000 Total long-term assets Total assets Liabilities and Stockholders' Equity LiabilitiesExplanation / Answer
Working Capital = Current Assets –Current Liabilities
92,000 = Current Assets – 36,000
Current Assets = 92,000 + 36,400
= $ 128,400
Account Payable = Total Current Liabilities – Net Payable – Income Tax Payable
= 36,400 – 6,000+10,100
= 20,300
Inventory = Current Asset –Cash –Account Receivable – Prepaid Expenses
= 128,400 – 24,000 – 37,000 – 14,000
= 53,400
Total Asset = Current Assets + Total Long Term Assets
= 128,000 + 219,000
= 347,400
Total Liabilities + = Total Assets
= 347,400
Long Term Assets (Gross) = Accumulated Depreciation + Net Long Term Assets
= 44,000 + 219,000
= 236,000
Debt /Total Assets = 0.50
Debt/ 347,400 = 0.50
Debt = 347,400 x 0.50
= $ 173,700
Mortgage Payable = 173,000
Common Stock = Total Liabilities x SH – Long Term Liabilities – Current Liabilities
= 347,400 – 173,700 – 36,400 – 91,000
= 46,000
Assets
Current Assets
Amount
Cash
24,000
Accounts receivable
37,000
Inventory
53,400
Prepaid Expenses
14,000
Total Current Assets
128,400
Long Term Assets
Building
263,000
Less: Accumulated Dep
(44,000)
Total Long Term Assets
219,000
Total Assets
Liabilities and Stockholder's Equity
347,400
Liabilities
Current Liabilities
Accounts Payable
20,300
Notes Payable
6,000
Income Tax Payable
10,100
Total Current Liabilities
36,400
Long Term Liabilities
Mortgage Payble
173,700
LongLiabilities
173,700
Stockholder's Equity
Common stock
91,000
Retained Earning
46,300
Total Stockholder's Equity
137,300
Total Liabilities and Stockholder's Eaquity
347,400
Assets
Current Assets
Amount
Cash
24,000
Accounts receivable
37,000
Inventory
53,400
Prepaid Expenses
14,000
Total Current Assets
128,400
Long Term Assets
Building
263,000
Less: Accumulated Dep
(44,000)
Total Long Term Assets
219,000
Total Assets
Liabilities and Stockholder's Equity
347,400
Liabilities
Current Liabilities
Accounts Payable
20,300
Notes Payable
6,000
Income Tax Payable
10,100
Total Current Liabilities
36,400
Long Term Liabilities
Mortgage Payble
173,700
LongLiabilities
173,700
Stockholder's Equity
Common stock
91,000
Retained Earning
46,300
Total Stockholder's Equity
137,300
Total Liabilities and Stockholder's Eaquity
347,400
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