Homework Soursefill in the balance sheet above using the info provided also
fill in the balance sheet above using the info provided also
Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 20,000 100,000 36,000 180,000 118,000 200,000 2,000 259,000 7000 During the month of July, the company had the following activities a. Issued 4,000 shares of common stock for $400,000 cash. b. Borrowed $100,000 cash from a local bank, payable in two years c. Bought a building for $182,000; paid $82.000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $200,000 e. Purchased supplies for $30.000 on account.Solution
FIGHTIN BLUE HENS CORPORATION BALANCE SHEET ASSETS AMOUNT LIABILITIES AMOUNT FIXED ASSETS CURRENT LIABILITIES AMOUNT Building 282000 Account Payable $ 50,000 Equipment 318000 Short term Borrowing 100000 Land 200000 TOTAL FIXED ASSETS (A) 800000 TOTAL CURRENT LIABILITIES $ 1,50,000 CURRENT ASSETS Account Receivable Long Term Debt Cash $ 2,54,000 Not Payable(Long -Term) $ 1,02,000 Supplies $ 37,000 Prepaid Rent TOTAL LIABILITIES (A) $ 2,52,000 TOTAL CURRENT ASSETS(b) $ 2,91,000 OWNER\'S EQUITY Common Stock $ 5,80,000 Retained Earning $ 2,59,000 TOTAL OWNER\'S EQUITY (B) $ 8,39,000 TOTAL ASSETS (A + B) $ 10,91,000 TOTAL LIABILITIES AND OWNERS EQUITY (A +B) $ 10,91,000 Adjustements: Cash a) Opening Balance 36000 Issue of common Stock $ 4,00,000 Borrowed from local Bank $ 1,00,000 Paid for Building $ -82,000 Paid for Equipment $ -2,00,000 $ 2,54,000 a) Increase in the common stock by = $ 4,00,000 b) Short term Borrowing $ 1,00,000 c) Building increased $ 1,82,000 d) increase in Equipment $ 2,00,000 e) Supplies incresed by $ 30,000 e) Account payable increased $ 30,000
