P5-3 Preparing a Balance Sheet and Analyzing Some of Its Parts LO5-3 Exquisite J
ID: 2653754 • Letter: P
Question
P5-3 Preparing a Balance Sheet and Analyzing Some of Its Parts LO5-3 Exquisite Jewelers is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015: cash, $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,500; investment in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000; accumulated depreciation, store equipment, $19,000; accounts payable, $52,500; long-term note payable, $42,000; income taxes payable, $9,000; retained earnings, $164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share). Required: 1 Based on these data, prepare a December 31, 2015, balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Possible input areas are shaded. EXQUISITE JEWELERS Balance Sheet December 31, 2015 Assets Current assets: Total current assets $ - Long-term investments: Fixed assets: Total fixed assets - Other assets: Total assets $ 377,500 Liabilities Current liabilities: Total current liabilities $ - Long-term liabilities: Total liabilities - Stockholders' Equity Contributed capital: Total contributed capital - Total stockholders' equity - Total liabilities and stockholders' equity $ - Required: 2 What is the net book value of the store equipment? Net book value P5-3 Preparing a Balance Sheet and Analyzing Some of Its Parts LO5-3 Exquisite Jewelers is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015: cash, $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,500; investment in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000; accumulated depreciation, store equipment, $19,000; accounts payable, $52,500; long-term note payable, $42,000; income taxes payable, $9,000; retained earnings, $164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share). Required: 1 Based on these data, prepare a December 31, 2015, balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Possible input areas are shaded. EXQUISITE JEWELERS Balance Sheet December 31, 2015 Assets Current assets: Total current assets $ - Long-term investments: Fixed assets: Total fixed assets - Other assets: Total assets $ 377,500 Liabilities Current liabilities: Total current liabilities $ - Long-term liabilities: Total liabilities - Stockholders' Equity Contributed capital: Total contributed capital - Total stockholders' equity - Total liabilities and stockholders' equity $ - Required: 2 What is the net book value of the store equipment? Net book valueExplanation / Answer
Balance sheet as at 31 December Assets Current assets: Cash 58,000.00 Accounts receivable 71,000.00 Merchandise Inventory 154,000.00 Prepaid Insurance 1,500.00 Store Equip held for disposal 9000 Accumulated Depr 9000 - Total Current Assets 284,500.00 Long term investments: Investment in Z 36,000.00 Fixed Assets: Store Equipment 67000 Less Accumulated Depr 10000 57,000.00 Total Fixed Assets 57,000.00 Other Assets: Total Assets 377,500.00 Liabilities Current Liabilities: Accounts Payable 52,500.00 Income tax Payable 9,000.00 Total Current Liabilities 61,500.00 Long term Liabilities: Long term note payable 42,000.00 Total Liabilities 103,500.00 Stockholders Equity Contributed Capital: Common Stock 100,000.00 Additional Paid in capital 10,000.00 Total Contributed Capital 110,000.00 Retained Earnings 164,000.00 Total Stockholder Equity 274,000.00 Total Liabilities and Stock holders Equity 377,500.00 Net Book value of Store equipment is 57000 as shown above
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