value 428 points E213 Part 1 Required 1 Using the data from

value: 4.28 points E2-13 Part 1 Required: 1. Using the data from these T-accounts, determine the amounts for the following on January 1, 2015: Assets Liabilities Stockholders\' Equity

Solution

Answer

Account name

Classification

Opening balance

Dr

Cr

Closing Balance

Cash

Assets

4200

[2700+900+1450] 5050

360

8890

Short term Investment

Assets

3000

900

2100

Property & Equipment

Assets

2900

1450

1450

Short term Notes Payable

Liabilities

1700

1700

Long Term Notes Payable

Liabilities

330

2700

3030

Common Stock

Stockholders\' Equity

640

640

Additional Paid in Capital

Stockholders\' Equity

2560

2560

Retained Earnings

Stockholders\' Equity

4870

360

4510

Assets = 4200 + 3000 + 2900 = $10100
Liabilities = 1700 + 330 = $2030
Stockholders’ Equity = 640 + 2560 +4870 = $8070

Assets = Liabilities + Stockholders’ Equity
$10100 = $2030 + $8070

Assets = 8890 + 2100 + 1450 = $12440
Liabilities = 1700 + 3030 = $4730
Stockholders’ Equity = 640 + 2560 +4510 = $7710

Assets = Liabilities + Stockholders’ Equity
$12440 = $4730 + $7710

Current Assets = Cash + Short Term Investments = 8890+ 2100 = $10990
Current Liabilities = Short Term Notes Payable = $1700

Current ratio = 10990 / 1700 = 6.46

Account name	Classification	Opening balance	Dr	Cr	Closing Balance
Cash	Assets	4200	[2700+900+1450] 5050	360	8890
Short term Investment	Assets	3000		900	2100
Property & Equipment	Assets	2900		1450	1450
Short term Notes Payable	Liabilities	1700			1700
Long Term Notes Payable	Liabilities	330		2700	3030
Common Stock	Stockholders\' Equity	640			640
Additional Paid in Capital	Stockholders\' Equity	2560			2560
Retained Earnings	Stockholders\' Equity	4870	360		4510