Question

The bookkeeper for Solomon's Country Music Bar left this incomplete balance sheet. Solomon's working capital is $95,000 and its debt to assets ratio is 40 percent. Required Complete the balance sheet by supplying the missing amounts. $ 22,000 32,000 19,000 (38,000) 212,000 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term assets Building Less: Accumulated depreciation Total long-term assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Notes payable Income tax payable Total current liabilities Long-term liabilities Mortgage payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 11,000 9,200 35,800 104,000

Answer 1

Note Note 2 22000 32000 57800 19000 130800 Note5 BalanceSheet Sno ASSETS Current Assets 1 Cash 2 Accounts Receivable 3 Inventory 4 Prepaid Expense 5 Total Current Assets(1+2+3+4) Long Term Assets 6 Building 7 Accumulated Deprecaition 8 Total Long term Assets(6+7) 9 Total Assets(5+8) Liabilities and stockholders equity 10 Accounts Payable 11 Notes Payable 12 Income tax payable 13 Total Current Liabilities(10+11+12) Long TermLiabilies 14 Mortgage Payable 15 Total Liablities(13+14) 16 Common Stock 17 Retained Earnings 18 Total Stockholders Equity(16+17) 19 Total Liabilities and stockholders Equity 250000 38000 2120001 342800 Note 3 15600 11000 92001 35800 Note 4 1013201 137120 104000 101680 205680 342800 Note6

Note 1:Current Assets Sno Particulars 1 Working Capital 2 Current Liabilities( Given) 3 Current Assets(1+2) Amount 95000 35800 130800 Note 2:Inventory Sno Particulars 1 Cash 2 Accounts Receivable 3 Prepaid Expense 4 Total Current Assets(note 1) 5 Inventory(4-3-2-1) Amount 22000 32000 19000 130800 57800 Note3:Accounts Payable Sno Particulars 1 Notes Payable 2 Income Taxpayable 3 Total Current Liabilities 4 Accounts Payable (3-2-1) Amount 11000 9200 35800 15600

Note 4:Mortgage Payable(Long term liabilities) Sno Particulars 1 Total Long term Assets 2 Current Assets 3 Total Assets(1+2) 4 Total Current Liabilities 5 Total Long Term Liabilities (342800*40%-35800) Amount 212000 130800 342800 35800 101320 Note 5:Building Sno Particulars 1 Total Long term Assets 2 Accumulated Deprecaiation 3 Building(1+2) Amount 212000 38000 250000 Note 6:Retained earnings Sno Particulars 1 Total Assets 2 Total Liabilities 3 Stock holders equity 4 Common Stock 5 Retained earnings Amount 342800 137120 205680 104000 101680