Question

The following information is given for Skylar Company for the year 2018:

	ACCOUNT NAME		BALANCE			DESCRIPTION
	Accounts Payable		$2,000			Payment is due in 30 days
	Cash		1,800			Includes cash in register and bank account
	Common Stock		30,000			Stock issued in exchange for owners' contributions
	Equipment		38,000			Includes manufacturing equipment, trucks, etc…
	Land		18,900			Held for future site of new warehouse
	Note Payable (long term)		25,000			Payment is due in six years
	Retained Earnings		3,000			Total earnings through September 30
	Salaries /Wages Payable		200			Payment is due in 7 days
	Supplies		1,500			Includes copy paper, toner, pens

1. Prepare a classified Balance Sheet in good form. You must date it properly and break assets and liabilities into their current and non-current classifications and show the following amounts in your Balance Sheet:

1. Total current assets B. Total non-current assets C. Total assets D. Total current liabilities E. Total non-current liabilities F. Total liabilities G. Total stockholders’ equity H. Total liabilities and stockholders’ equity.
2. What is the Net Working Capital for Skylar Company?
3. Skylar’s Equipment account shows a balance of $38,000. Is this the price that Skylar paid to acquire the equipment (which is its historical cost) or is it the equipment’s current selling price (market value)? Why do we report the equipment at this amount?
4. Give an example of an asset that is NOT included on the Balance Sheet. (Your book specifically outlines this). Why do we not include this asset on the Balance Sheet?

Answer 1

Balance Sheet
For the year ended September 2018
Current Assets
Cash		1,800
Supplies		1,500
Total current Assets			3,300
Land		18,900
Equipment		38,000
Total Non current Assets			56,900
Total Assets			60,200
Liabilities & stockhlder equity
Current Liabilities
Accounts Payable		$2,000
Salaries /Wages Payable		200
Total Current Liabilities			2,200
Note Payable (long term)		25,000
Total Non Current Liabilities			25,000
Total liabilties			27,200
Stockholder equity
Common Stock		30,000
Retained Earnings		3000
Total Stockholder equity			33,000
Total Liabilities & stockhlder equity			60,200
ans 2
Net working capital
Current Assets-Current Liabilities
3300-2200	1,100
ans 3
Yes it is the price paid to acquire equipment (historical cost of the equipment). In balance sheet the equipment
is showed at historical cost and accumulated depreciation is subtracted to get
net amount
ans 4
The information from the book is not available in the book
Rest all part did
If any doubt please comment