Question

For your balance sheet, you want to calculate the asset side (left hand side) and then total liabilities from the right-hand side. Then place in the owner’s equity number that balances both sides. So, place in the owner’s equity number last after you have calculated the assets on the left-hand side and total liabilities on the right-hand side. The top left-hand side will include all Current Assets. Below that will include Net Fixed assets. Then total them up to come up with Total Assets. The top right-hand side will include all Current Liabilities. Below that will include all debt and equity. Then total up all the liabilities and plug in the equity amount to obtain the Total Liabilities and Equity.

Cash	30,629
Depreciation	56,876
Interest expense	13,130
Selling & Administrative Expenses	43,130
Accounts Payable	52,910
Net Fixed Assets	262,617
Sales	403,456
Accounts Receivable	21,524
Notes Payable	24,308
Long-term Debt	129,342
Inventory	45,785
Tax Rate	35%
Dividend Payout %	50%

	Balance Sheet
	2016

Answer 1

The formula used to calculate owner's equity has been highlighted below -

fe F8 =F9-F6-F7 A B Balance Sheet (2016) Current Assets Current Liabilities Accounts Payable Cash 4 30,629 52,910 Notes Payable Total Current Liabilities Accounts Receivable 21,524 24,308 Inventory Total Current Assets 45,785 6. 77,218 Long-term Debt Owner's Equity 97,938 262,617 129,342 (balancing figure) (same as total assets) Net Fixed Assets 8. 153,995 Total Liabilities and Owner's Equity Total Assets 9. 360,555 360,555 10 11 12