Question

At 30 September 2018, the balance sheet accounts for Oscar Ltd were as follows:

Accounts Payable $ 1,800 Land $ 33,000

Accounts Receivable $ 11,600 Share Capital $ 100,000

Buildings $ 68,000 Interest Payable   $  2,000

Cash $ 30,000 Loan Payable $ 46,000

Equipment $ 18,700 Supplies   $  6,600

Retained Earnings ?

• The buildings, equipment, and land are classified as Property, Plant & Equipment.
• ½ of the loan is due on 30 June 2019 and the rest is due on 30 October 2019. The interest is due next month.

Required:

Prepare a balance sheet of 30 September 2018

Answer 1

Balance Sheet of 30 September 2018:

Oscar Ltd.
Balance Sheet
As on September. 30, 2018
Assets
Current Assets:
Cash	$30,000
Accounts Receivable	$11,600
Supplies	$6,600
Total Current Assets		$48,200
Property, Plant & Equipment:
Land	$33,000
Buildings	$68,000
Equipment	$18,700
Property, Plant & Equipment		$119,700
Total Assets		$167,900
Total Liabilities and Shareholders' Equity
Total Liabilities:
Current Liabilities:
Accounts Payable	$1,800
Interest Payable	$2,000
Short-term Loan Payable ($46,000*1/2)	$23,000
Total Current Liabilities		$26,800
Long-term Loan Payable ($46,000 - $23,000)	$23,000
Total Long-term Loan Payable		$23,000
Total Liabilities		$49,800
Shareholders Equity:
Share Capital	$100,000
Retained Earnings ($167,900 - $49,800 - $100,000)	$18,100
Total Shareholders Equity		$118,100
Total Liabilities and Shareholders' Equity		$167,900