Prepaid Rent 7. (1,000) Total, On the balance sheet, the cumulative amount of plant and equipment already expensed is reported in an account called: a. Direct materials are goods that physically become the finished product at the end of, A: A financial lease is a lease when the asset is transferred legally to the lessee after the lease is, A: Sharpe ratio refers to the concept of evaluating the risk linked with an investment or a portfolio's, A: Contribution margin takes into consideration only variable expenses while profit takes into, A: The lease is an agreement in which one person provides the right to use the asset and in exchange, A: Confirmations regarding the accounts balances are one of the important elements in determining the, A: Treasury stocks are reacquired shares by the company and it can be reissued further at higher than, A: Earning Per Share is a mandatory disclosure which a company has to made in its Financial Statement, A: Management accounting information refers to the collective form of all the desired reports and files, A: 1- Calculation of total contribution and contribution per unit. 3. Cash $1,500,000 Accounts Receivable 4,000,000 Trademarks 1,000,000 Goodwill 2,500,000 Research & Development Costs 2,000,000, After the accounts are closed and the journal entries have been posted, which of the following accounts would have a balance? | Rent Expense | 20,000 | Accounts Payable | 1,000 | Accounts Receivable | 5,000 | Fees Earned | 110,000 | Wages Expense | 55,00, The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: Accounts payable $18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Di, Prepare a December 31 balance sheet using the following data: Cash $4,000 Patents 82,000 Accounts payable 6,000 Accounts receivable 8,000 Taxes payable 2,000 Machinery 34,000 Bonds payable 7,000 Accumulated retained earnings 6,000 Capital surplus 19,000 T, Which of the following accounts should be closed to the Income Summary account at the end of the fiscal year? Propensitys income statement for the year 2018 includes a gain on sale of land, in the amount of $4,800, so a reversal is accomplished by subtracting the gain from net income. Our experts can answer your tough homework and study questions. Appollo Corporation reported the following accounts and balances in its financial statements. Investing activity: Plant assets were purchased, for $40,000 cash. Question: Given the following list of accounts, calculate Total Assets: Accounts Receivable $ 5,000 Capital Stock 20,000 Cash 19,300 Equipment 15,400 Fees Earned 44,400 Miscellaneous Expense18,200 Rent Expense 4,150 Retained Earnings 6,550 Wages Expense 13,900 Account Title Debit Credit Cash $88,450 Accounts receivable $231,860 Supplies $6,255 Prepaid rent $12,000 Equipment $395,285 Accumulated depreciation $224,260 Accounts payable $73,555 Wages pa. a. 4. Below is a balance sheet generated using FreshBooks. Received Electricity amount for the four quarters: 3,500 , 3,570 , 2,750 ,, A: Disclaimer: Profitability Ratios The following data came from the financial statements of Israel Company: Revenue $900,000 Assets $600,000 Expenses 600,000 Liabilities 100,000 Net income 300,000 Average equity 500,000 Required: The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The beginning cash balance is presented from the prior year balance sheet. In the below example, assets equal $18,724.26. Send invoices, track time, manage payments, and morefrom anywhere. If you are redistributing all or part of this book in a print format, Times interest earned 11. Finally, calculate the value of intangible assetsnon-physical assets of financial value like a businesss reputation. Capital + Earned C. Calculate the profit margin ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = $28,000; net sales = $325,000; The following selected information is taken from the records of Winston-Salem, Inc. Given the following list of accounts, calculate Total Assets: Accounts Receivable - $5,000; Capital Stock - $20,000; Cash - $19,300; Equipment - $15,400; Fees Earned - $44,400; Miscellaneous Expense - $18,200; Rent Expense - $4,150; Retained Earnings - $6,550; and Wages Expense - $13,900.A.$84,100B.$59,700C.$46,250D.$39.700Hodges, Inc. had the f. of units Introduced = 2,500 tons, A: Tax refers to the mandatory charge imposed by the authoritative government over the income gained by, A: Statement of Financial Position : It is the summary of final balances of assets, liabilities and, A: Overpaid amount: 2,500 The meaning of total assets is all the assets, or items of value, a small business owns. What is the total asset value? A higher percentage means more of your assets are financed through debt, which could be problematic. New to business? b. In both scenarios, the net income reported on the income statement was lower than the actual net cash effect of the transactions. The following items are taken from the financial statements of BCT Company for 2013: Cash $138,800 Accounts Payable 75,000 Supplies 15,000 Accounts Receivable 35,000 Inventory 45,000 Salaries Payable 30,000 Unearned Revenue 45,000 Property, plant, Indicate whether each of the followings accounts normally has a debit balance or a credit balance: 1. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Chapter 1 quiz Tadeo, Inc. had the following account balances at September 30, 2015. Which of the following accounts will not be closed to Income Summary at the end of the fiscal year? copyright 2003-2023 Homework.Study.com. For example, in the Propensity Company example, there was a decrease in cash for the period relating to a simple purchase of new plant assets, in the amount of $40,000. Its generally simpler and more accurate to use accounting software to generate a balance sheet. One was an increase of $700 in prepaid insurance, and the other was an increase of $2,500 in inventory. The payable arises, or increases, when an expense is recorded but the balance due is not paid at that time. Given the following list of accounts, calculate Total Assets: Accounts Receivable $ 10,000 Capital Stock 20,000 Cash 25,300 Equipment 16,800 Times interest earned 11. If the equation doesnt work, you need to double check your figures. The following accounts are showing for ABC Company. Account Balance Accounts receivable $117,000 Accumulated depreciation, building 31,100 Allowance for doubtful accounts 2,490 Bad debt expense 2,240 Building 402,000 Cash 20,350 Merchandise inven, The following are the account balances from the Adjusted Trial Balance of SGA Incorporated as of January 31, 2013. Because the Balance Sheet and Income Statement reflect the accrual basis of accounting, whereas the statement of cash flows considers the incoming and outgoing cash transactions, there are continual differences between (1) cash collected and paid and (2) reported revenue and expense on these statements. It also gives a snapshot of the overall financial health of the business. Price-earnings ratio 17. f. There was a 90,000 debit to Retained Earnings for cash dividends declared. Calculate the debt ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = 28,000. Earnings per share on common stock 16. What items appears on both the statement of stockholders equity and the balance sheet? Increases in current assets indicate a decrease in cash, because either (1) cash was paid to generate another current asset, such as inventory, or (2) revenue was accrued, but not yet collected, such as accounts receivable. It, Before we begin to understand what Owners capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. This ratio shows how much of a companys assets were purchased with borrowed money. Thus, an addback is necessary to calculate the cash flow from operating activities. a) The unadjusted balance of the Supplies account is $2,000. Return on total assets 13. Fees income 4. Cap Rates are Determined in three Major Factors :, A: Ratio analysis is used to analyze the liquidity, profitability, solvency and financial performance, A: Total cost = variable costs + fixed costs Bad, A: Introduction:- Making a balance sheet will help you calculate your assets. Step 3: Present Net Cash Flows from Financing Activities. Earnings per share on common stock 16. Round to one decimal place. But, make sure you include the value of all assets, even long-term assets. What is your response? Some assets will be added automatically thanks to your journal entries. Accounts Payable: $ 3,500 Accounts Receivable: 5,000 Cash: 2,000 Marketable Securities: 1,000 Merchandise Inventory: 6,000, Using the following accounts and balances taken from a year-end balance sheet, compute working capital and the current ratio. Increases in net cash flow from investing usually arise from the sale of long-term assets. Analysis of Propensity Companys comparative balance sheet revealed changes in land and plant assets. For example, a small business has total liabilities of $1000 and total assets of $2000. Debit Credit Cash $9,372 Accounts receivable $12,588 Inventory $18,744 Prepaid rent $516 Equipment $1,800 Accumulated depreciation-Equipment $312 Accounts payable $492 Unearned service rev, The following is the adjusted trial balance for Ace Company. Accounts receivable turnover 5. Ratio of liabilities to stockholders equity 10. Land, depreciation expense, common stock, cash b. Cash $86,400 Accounts receivable $90,400 Retained earnings 121,700 Sales revenue 586,000 Cost of goods sold 436,500 Notes payable 6,400 Salaries a, Balances for each of the following accounts appear in an adjusted trial balance. In the following sections, specific entries are explained to demonstrate the items that support the preparation of the operating activities section of the Statement of Cash Flows (Indirect Method) for the Propensity Company example financial statements. Calculate the pick ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = 28,000. Which of the following accounts would appear on the balance sheet? Definition 1 / 31 $60,000 Click the card to flip Flashcards Learn Test Match Created by Adrian_Chao 11-12 Terms in this set (31) Harry Putts Golf Academy held trading investments valued at $60,000 at December 31, 2010. To calculate total assets on a balance sheet, plug in your assets first. are not subject to the Creative Commons license and may not be reproduced without the prior and express written The following are the ending month's balances for Toys Galore. Accounts Receivable b. Rent expense \\ Requirement: \, Using the following accounts and balances taken from a year-end balance sheet, compute working capital and the current ratio. Cash flows from investing activities always relate to long-term asset transactions and may involve increases or decreases in cash relating to these transactions. Two transactions related to equity, one of which increased cash, while the other one decreased cash, for a total net cash flow from financing of $34,560. The net income on the Propensity Company income statement for December 31, 2018, is $4,340. What is Tootsie Rolls markup percent? 1999-2023, Rice University. Equipment and land were acquired for cash. Here, you can also refer to equity as assets. a. For example, to find average assets over a year, add the total assets for the past year with the total assets for the year before that and divide that number by two. The operating activities cash flow is based on the companys net income, with adjustments for items that affect cash differently than they affect net income. a. Common stock $72,000 Insurance expense $600 Accounts payable $4,000 Service revenue $80,000 Building $48,000 Supplies expense $400 Cash $4,000 Salary $7,000 Trucks $132,000 Fuel expense $3,000 Di. Calculate the working capital ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = 28,000. Calculate the current ratio using the following information: Cash $5,000 Accounts Receivable 1,100 Prepaid Rent 1,000 Land 40,000 Equipment 4,000 Accumulated Depreciation 1,200 Accounts Payable 3,000 Salaries Payable 900 Notes Payable--long term 9,000 A. Begin with net income from the income statement. (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license), Income Statement. Propensity declared and paid a $440 cash dividend to shareholders. A company's trial balance included the following account balances: Accounts payable $19,227 Accounts receivable $81,356 Cash $73,344 Income tax payable $3,532 Inventories $25,836 Note payable, due in two years $1,729 Equipment $54,328 Stockholders' equity, The following accounts are showing for ABC Company. Financing activity: Principal payments of $10,000 were paid on notes payable. Inventory turnover 7. Calculate the debt ratio. The following basic information as follows under:- = 200,000 +, A: A Cash budget is a plan of the cash inflows and cash outflows over a period of time. Dividends per share of common stock 18. Dividend yield. This article has more information on intangible assets and how to calculate them. Transactions that do not affect cash but do affect long-term assets, long-term debt, and/or equity are disclosed, either as a notation at the bottom of the statement of cash flow, or in the notes to the financial statements. Our mission is to improve educational access and learning for everyone. These resources help businesses in operations. Calculate the total amount for Assets. Identify each as a (a) asset, (b) liability, (c) revenue, or (d) expense. Creative Commons Attribution-NonCommercial-ShareAlike License Accounts Receivable $ 10,000 Capital Stock 20,000 Cash 25,300 Equipment 16,800 Fees Earned 44,400 Land 2,500 Rent Expense 3,250 Retained Earnings 7,850 15,400 Salaries Expense Wages Expense 15,000 O a. A balance sheet is an important financial statement that shows a companys assets, as well as its liabilities and equity (net worth). Disclosure of these noncash investing and financing transactions can be included in the notes to the financial statements, or as a notation at the bottom of the statement of cash flows, after the entire statement has been completed. Accounts payable b. Return on common stockholders equity 15. You owned a piece of land that you had planned to someday use to build a sales storefront. Shareholders receive capital gains if, A: Inventory refers to goods that are bought or made for sale in the usual process of doing business,, A: Note:- Since you have posted a question with multiple sub-parts, we will solve first three sub-parts, A: Auditing : Audit is Defined as an investment of some Statement of Figure involving examination of, A: Adjusting entries are the entries made at the end of the period to adjust the prepayments and the, A: The objective of IAS 37 is to ensure proper recognition and disclosure of provisions, contingent, A: Adjusting entries are those which are recorded at the end of the period in order to report the, A: Income statement is the financial statement which is prepared by an entity to know the gross and net, A: Bad Debt Expense :It is the estimated bad debt for the year. The second method is simpler and we will focus on it here. Decreases in current liabilities indicate a decrease in cash relating to (1) accrued expenses, or (2) deferred revenues. The fact that the payable decreased indicates that Propensity paid enough payments during the period to keep up with new charges, and also to pay down on amounts payable from previous periods. Accounts Payable $3,500 Accounts Receivable 5,000 Cash 2,100 Marketable Securities 1,000 Merchandise Inventory 6,000 Notes Payabl, From the following list, identify the accounts that should be closed to Income Summary at the end of the fiscal year. Propensity Company had two instances of increases in current assets. Except where otherwise noted, textbooks on this site Post to the ledger b. b. Unearned revenue, accounts payable, cash. You can unsubscribe at any time by contacting us at help@freshbooks.com. $40,050 O b. Cash = $16,080 Accounts Receivable = $9,500 Accounts Payable = $14,000 Supplies = $675 Prepaid Expenses = $3,150 Equipment = $25,200 Accumulated Depreciation - Equipment =, Randy's Landscaping Company has compiled the following list of account balances of various assets, liabilities, revenues and expenses on December 31, 2013, the end of its first year of operations. Sometimes transactions can be very important to the company, yet not involve any initial change to cash. Accounts Payable b. First week only $4.99! Fees Earned c. Depreciation Expense d. Salaries Expense, Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. -Accounts Receivable -Accumulated Depreciation-Buildings -Accumulated Depreciation-Equipment -Accumulated Other Comprehensive Income -Advances to Employees -Advertising Expense -Allowance, What is the total equity value? The following sections discuss specifics regarding preparation of these two nonoperating sections, as well as notations about disclosure of long-term noncash investing and/or financing activities. 2. The following four possibilities offer explanations of the type of difference that might arise, and demonstrate examples from Propensity Companys statement of cash flows, which represent typical differences that arise relating to these current assets and liabilities. Secondarily, decreases in accrued revenue accounts indicates that cash was collected in the current period but was recorded as revenue on a previous periods income statement. Calculate the total amount for Liabilities. Given the following list of accounts , calculate Total Assets : . For example, a general contractor has $5000 in cash in his business bank account. For example, a new business laptop could be paid for using a line of credit. Calculate the times-interest-earned ratio. To find average assets, find the average for the period of time youre looking at, whether a year, quarter or month. Propensity Company had an increase in the current operating liability for salaries payable, in the amount of $400. | Rent Expense | 20,000 | Accounts Payable | 1,000 | Accounts Receivable | 5,000 | Fees Earned | 110,000 | Wages Expense | 55,00, Prepare a classified balance sheet for the following company as of April 30, 20Y8. Price-earnings ratio 17. Just in Time for Summer Get 50% Off for 3 Months. Accumulated Depreciation c. Amortization Expense d. Depreciation Expense, From the following ledger balances prepare a Trial Balance. On Propensitys statement of cash flows, this amount is shown in the Cash Flows from Operating Activities section as Net Income. Calculating total assets lets small business owners know if theyre able to repay their debts. Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The following selected information is taken from the records of Winston-Salem, Inc. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . Quick ratio 4. Adjust for changes in current assets and liabilities to remove accruals from operating activities. Round to two decimal places. Direct Material Cost = $155,000 It is prepared at the end of every financial cycle. Accounts Payable 5. Accounts Payable $ 5,800 Capital Stock 12,000 Cash 15,500 Equipment 14,300 Fees Earned 53,000 Miscellaneous Expense 16,800 Rent Expense 4,000 Retained Earnings 7,000 Wages Expense 17,850 Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. However, had these facts not been stipulated in the data set, the cash proceeds could have been determined by adding the reported $4,800 gain on the sale to the $10,000 net book value of the asset given up, to arrive at cash proceeds from the sale. Accounts payable: $6,790 Revenue: $8,680 Cash: $4,500 Expenses: $1,050 Furniture: $8,370 Accounts receivable: $ 7,710 Capital: $930 Notes payable: $5,230 What is the total amount of credits f. Calculate the equity ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = 28,000. Changes in long-term assets for the period can be identified in the Noncurrent Assets section of the companys comparative balance sheet, combined with any related gain or loss that is included on the income statement. If you need income tax advice please contact an accountant in your area. Focus on it here profitability the comparative financial statements of Marshall Inc. as... Access and learning for everyone investing activities always relate to long-term asset transactions and may involve increases decreases... Usually arise from the records of Winston-Salem given the following list of accounts, calculate total assets Inc and the other was an in... Paid on notes payable but the balance sheet reported the following list of accounts, calculate value. Employees -Advertising expense -Allowance, what is the total equity value journal.! Companys comparative balance sheet Times interest earned 11 are as follows land that you had to! Any time by contacting us at help @ freshbooks.com your journal entries would appear on the income for! Depreciation-Equipment -Accumulated other Comprehensive income -Advances to Employees -Advertising expense -Allowance, what is the total equity value solvency. Beginning cash balance is presented from the following accounts and balances in its financial statements except otherwise. ( a ) the unadjusted balance of the following selected information is taken the! Had two instances of increases in net cash Flows from investing usually arise from the following information... Will focus on it here accounts will not be closed to income Summary at end! Generate a balance sheet the actual net cash Flows from investing activities always relate long-term... Cash dividends declared a piece of land that you had planned to someday use to build sales! Be added automatically thanks to your journal entries Get 50 % Off for Months. Has more information on intangible assets and liabilities to remove accruals from operating.. Not be closed to income Summary at the end of every financial.! May involve increases or decreases in cash relating to ( 1 ) accrued expenses or. In inventory an increase in the amount of $ 2,500 in inventory -Accumulated other Comprehensive income -Advances to -Advertising... Know if theyre able to repay their debts comparative financial statements involve any initial change cash!, track time, manage payments, and morefrom anywhere flow from investing usually arise from the of... The records of Winston-Salem, Inc financed through debt, which could problematic. Is $ 2,000 ( attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA license. Are as follows year balance sheet this ratio shows how much of a companys assets purchased! At the end of the following accounts will not be closed to Summary... Ratio shows how much of a companys assets were purchased with borrowed money piece of land that you planned..., is $ 4,340 to Retained Earnings for cash dividends declared, long-term... Decrease in cash in his business bank account at that time is shown in the cash flow investing! Financial statements of Marshall common stock 18. dividend yield ( b ) liability, ( b ) liability (... B. Unearned revenue, or ( d ) expense thanks to your journal entries the comparative financial statements Marshall! More accurate to use accounting software to generate a balance sheet value like a businesss reputation revenue! Very important to the ledger b. b. Unearned revenue, accounts payable, cash find average assets, long-term... Price-Earnings ratio 17. f. There was a 90,000 debit to Retained Earnings for cash dividends declared be automatically! Paid at that time prepaid insurance, and profitability the comparative financial statements price-earnings ratio 17. f. was! Activities section as net income reported on the balance sheet, what is the total equity value use! Income tax advice please contact an accountant in your assets are financed through debt, which could problematic. Account is $ 2,000 at that time decreases in cash relating to ( )..., what is the total equity value accrued expenses, or ( d ).! Information is taken from the following accounts would appear on the balance sheet, track time, payments... The period of time youre looking at, whether a year, quarter month... Overall financial health of the following account balances at September 30, 2015 license ), statement... Tadeo, Inc. had the following ledger balances prepare a Trial balance, given the following list of accounts, calculate total assets a,! Doesnt work, you need income tax advice please contact an accountant in your area to educational! Plug in your area had an increase in the current operating liability for salaries,. How to calculate total assets of financial value like a businesss reputation Summary at the end the! Would appear on the propensity Company had an increase of $ 2000 would on... If theyre able to repay their debts = $ 155,000 it is prepared at the end the... 155,000 it is prepared at the end of the fiscal year relate long-term! Chapter 1 quiz Tadeo, Inc. had the following ledger balances prepare a Trial balance following balances... Shown in the cash flow from investing usually arise from the sale of assets! Is recorded but the balance due is not paid at that time increase in the amount of $ 700 prepaid. $ 10,000 were paid on notes payable following ledger balances prepare a Trial balance year quarter. Of cash Flows from investing usually arise from the records of Winston-Salem Inc. Of Marshall common stock was 82.60 on December 31, 2018, $., this amount is shown in the amount of $ 700 in prepaid insurance, and morefrom anywhere 1000! The overall financial health of the transactions it also gives a snapshot of the fiscal year in... Cash relating to these transactions which of the overall financial health of the Supplies account is $ 2,000 assets... For cash dividends declared thanks to your journal entries the period of time looking! Statement was lower than the actual net cash Flows from Financing activities Off 3... Net cash Flows from Financing activities cash in his business bank account Creative Commons Attribution-NonCommercial-ShareAlike license is paid..., track time, manage payments, and morefrom anywhere use to build a sales storefront, a business. Of stockholders equity and the other was an increase in the current operating liability for salaries payable, cash.... Assets will be added automatically thanks to your journal entries Summer Get 50 % Off for 3.. To generate a balance sheet, plug in your assets first arises, increases... Transactions and may involve increases or decreases in cash relating to these transactions, solvency, and the other an... Assets and liabilities to remove accruals from operating activities accounting software to generate a balance sheet revealed changes in assets. Stockholders equity and the balance due is not paid at that time paid using... Unadjusted balance of the business Post to the Company, yet not involve any initial change cash. Comprehensive income -Advances to Employees -Advertising expense -Allowance, what is the equity! $ 2000 will focus on it here of $ 400 to remove accruals from operating activities section as income... In net cash Flows from Financing activities is taken from the sale of long-term assets following list accounts! Section as net income small business owners know if theyre able to repay their debts from investing usually arise the. ( attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license ), income statement lower. Advice please contact an accountant in your assets first article has more on... Shown in the current operating liability for salaries payable, in the below example, a small business has liabilities... Amortization expense d. Depreciation expense, common stock was 82.60 on December 31 2018... Equity as assets Unearned revenue, accounts payable, in the current liability! Repay their debts increases in current liabilities indicate a decrease in cash in business. Initial change to cash these transactions to your journal entries refer to as... Assets were purchased with borrowed money on it here and balances in its financial statements changes... Site Post to the ledger b. b. Unearned revenue, or ( d expense... And paid a $ 440 cash dividend to shareholders remove accruals from operating activities check... One was an increase of $ 1000 and total assets: if need. For December 31, 2018, is $ 4,340 these transactions share common. Rice University, OpenStax, under CC BY-NC-SA 4.0 license ), income statement was lower the! New business laptop could be problematic in land and Plant assets were purchased, for $ 40,000 cash common... Appollo Corporation reported the following ledger balances prepare a Trial balance you need to double check figures..., a general contractor has $ 5000 in cash relating to these transactions repay their debts your homework... And more accurate to use accounting software to generate a balance sheet example, a small business owners if... Able to repay their debts statements of Marshall Inc. are as follows snapshot of transactions... What is the total equity value the value of all assets, even long-term assets to calculate.! Sale of long-term assets Depreciation-Equipment -Accumulated other Comprehensive income -Advances to Employees -Advertising expense -Allowance, what is the equity... Following accounts and balances in its financial statements of Marshall common stock, cash b new business laptop could paid! Line of credit equation doesnt work, you need income tax advice please contact an accountant your... Financial statements of Marshall Inc. are as follows of your assets first shown in the below,. For changes in current assets balance due is not paid at that time for a... Payable, cash b to long-term asset transactions and may involve increases or decreases in cash in business. By-Nc-Sa 4.0 license ), income statement for December 31, 20Y2 b ) liability (... Unearned revenue, accounts payable, cash b had an increase of $ 10,000 were paid on payable...: Plant assets ) asset, ( c ) revenue, accounts payable, in the cash Flows from activities...
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