The following is the list of accounts for Cayden Enterprises at 31 October. Acco
ID: 2588493 • Letter: T
Question
The following is the list of accounts for Cayden Enterprises at 31 October.
Accounts Payable 10,000
Accounts receivable=12,600
Accumulated depreciation on office equipment= 2,500
Capital=54100
Cash at bank=16,000
Inventory=8,000
Land= 135,000
Loan payable-long term= 120,000
Office equipment= 16,000
Prepaid insurance= 1,800
Unearned service fees= 2,800
Calculate the following items that would appear in the balance sheet at 31 October.
My total capital does not match with actual amount, please assist in what I’m doing wrong.
Current Assets
Accounts receivable= 12,600
Inventory= 8,000
Cash at bank=16,000
Total of current assets= 36,600
Non-current Assets:
Office equipment: 13,500
Land: 135,000
Prepaid insurance: 1,800
Total of non-current assets: 150,300
Total Assets: 186,900
Current Liabilities:
Accounts Payable= 10,000
Unearned services= 2,800
Total of current liabilities= 112,800
Non-current liabilities
Land= 135,000
Loan payable-Long term= 112,000
Total of non-current liabilities= 147,000
Capital=Total Assets-AC Payable + unearned fees + loan payable
Explanation / Answer
Answer
Your Current Liabilities and long term liability and Capital formula and calculation are wrong
Current Liabilities = Accounts Payable + Unearned Income
= 10,000 + 2,800
Current Liabilities = 12,800
Non-current Liabilities = Long term Loan
Non-current Liabilities = 120,000
Capital = Total Assets – Current Liabilities – Non-current Liabilities
= (36,600 + 150,300) - 12,800 -120,000
Capital = 54,100
Now that all the calculations are correct, Balance Sheet will MATCH
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