1 Construct a balance sheet for a company given the followin

1. Construct a balance sheet for a company given the following data. Cash and cash equivalent $20,000 Building- Inventory Account receivable Account payable Other current liabilities-$10,000 Long-term debt- $350,000 $70,000 $45,000 $40,000 $150,000

Solution

Balance Sheet for Company as on date Assets: $ $ Non-Current Assets: Buildings 350,000 Total Non-Current Assets 350,000 Current Assets: Inventory      70,000 Accounts receivable      45,000 Cash and Cash equivalent      20,000 Total Current Assets 135,000 Total Assets 485,000 Equity and Liabilites: Owners Equity 285,000 Non-Current Liabilites: Long term debt 150,000 Total Non-Current Liabilities 150,000 Current Liabilites: Accounts Payable      40,000 Other Current Liabilities     10,000 Total Current Liabilities     50,000 Total Equity and Liabilites 485,000 Note: Owners Equity is balancing amount =485,000-150,000-50,000 = 285,000