Question

answer the box in second picture

unused portion of store and office equipment, $79,500; December 31, current year, amounts owed to publishers purchased, $12,900; one-year note payable to a local bank for $3.700. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of current year. Some information has been given below. Assets Cash Accounts receivable Store and office equipment Answer is complete and correct. COLE VALLEY BOOK STORE Balance Sheet At December 31, Current Year Liabilities 68,450 Accounts payable 40,500 Note payable 79,500 Interest payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity 188,450 Total liabilities and stockholders' equity 12,900 3,700 140 16,740 $ 142,800 28,910 171,710 188,450 Total assets < Prev 34 of 8 Next >

Answer 1

Capital invested by partners = $71,400 per partner

Hence, owner's equity, beginning = 71,400 x 2

= $142,800

Ending assets = Cash + Accounts receivable + Store and office equipments

= 68,450+40,500+79,500

= $188,450

Ending liabilities = Accounts payable + note payable

= 12,900+3,700

= $16,600

Owners equity, ending = ending assets - Ending liabilities

= 188,450-16,600

= $171,850

Owner's equity ending = Owners equity, beginning + Retained earnings, ending

171,850 = 142,800 + Retained earnings, ending

Retained earnings, ending = $29,050

Retained earnings, ending = Retained earnings, beginning + Net income - Dividends

29,050 = 0 + Net income - 0

Net income = $29,050

Amount of Net income

$29,050

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