2. Use your knowledge of balance sheets to fill in the missing amounts: ASSETS L

Question

2. Use your knowledge of balance sheets to fill in the missing amounts:
ASSETS LIABILITIES
Accounts payable $12,000
Accounts Receivable 100,000 Notes Payable 50,000
Inventory 110,000 Total Liabilities $62,000
Total current assets 220.000 Long-term debt 128,000
Gross plant & equip 500,000 Total Liabilities 190,000
Less: accumulated Common stock($1 par, 100,000 100,000
Depreciation ????? Paid-in-capital 290,000
Net Plant & equipment 375,000 Retained earnings 150,000
Total assets ???? Total stock & equity ???
Total Liabilities & equity ???

Explanation / Answer

accumulated Depreciation =Gross plant & equip -Net Plant & equipment =500,000-375,000 = $125,000 Total stock & equity = Common stock+Retained earnings+Paid-in-capital =100,000+290,000 + 150,000 = $540,000 Total Liabilities & equity =$540,000 +190,000 = $730,000 Total assets =$730,000

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