The following information applies to the questions displayed

The following information applies to the questions displayed below) Exquisite merchandise inventory, $154,000: prepaid insurance, $1,500, inwestment in stock of Z Corporation (long-term), $36,000; store equipment, $67000 $9,000; accumulated depreciation, store equipment, $19,000, accounts peyable, $52,500: long-term note common stock·100,000 shares outstanding, par value $1.00 per share (originally sold and issued at S10 per share). ancial statements for current year. The following amounts were correct at December 31, current year cash, $58,000, accounts receivabile, $7100 payable. $42,000, income taxes payable, $9,000, retained earnings, $164,000, and used store equipment held for dsposa. value 10.00 points Required information Required: 1. Based on these data, prepare a December 31, current year, balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Solution

Balance Sheet December 31 Assets Current assets: Cash 58000 Accounts Receivable 71000 Merchandise Inventory 154000 Prepaid Insurance 1500 Total current assets 284500 Long-term investments: Investment in Stock of Z-Corporation 36000 Fixed assets: Store Equipment 67000 Accumulated Depreciation, Store Equipment -19000 Total fixed assets 48000 Other assets: Used store equipment held for disposal 9000 Total assets 377500 Liabilities Current liabilities: Accounts payable 52500 Income taxes payable 9000 Total current liabilities 61500 Long-term liabilities: Note payable 42000 Total liabilities 103500 Stockholders\' Equity Contributed capital: Common stock 100000 Additional paid-in capital 10000 Total contributed capital 110000 Retained earnings 164000 Total stockholders\' equity 274000 Total liabilities and stockholders\' equity 377500