The following account balances were taken from the accounting records of Towing
ID: 2328241 • Letter: T
Question
The following account balances were taken from the accounting records of Towing company for the year ended December 31, 2821 Trademark Notes payable Accounts receivable Equipment Interest revenue salaries payable Patent Dividends Cost of Goods Sold Accounts payable Inventory Sales revenue Cash Salaries expense Retained earnings Land Income tax expense Common stock Supplies $96,886 $42,8e0 $85,eee $17,888 $23,600 $19,888 $11,800 $46,000 $81,800 $94,800 $26,800 $31,00 $56,800 (at January 1, 2021) $10,0ee $15,eee 1. Total current assets at December 31, 2921 are equal to 45% of total assets at December 31, 2021. 2. Total equity at December 31, 2e21 is equal to 6e% of total liabilities at December 31, 2821. 3. Total intangible assets at December 31, 2021 are equal to 48% of total equity at December 31, 2e21. calculate the amount of total assets reported on Towing Company's balance sheet at December 31, 2821.Explanation / Answer
First of all Divided items into 3: as below
- Interest revenue is an item for Income statement
-Dividend assumed not to be dividend income for other investment but as Delclared by company for shareholders to be distribute.
-cost of goods sold is in income statement
-salaries expenses are paid out one is belog to I/S
-supplies are expense
We know Total Asset = Equity + Liability
Now a quick analysis on table above
There is no Unknown value for Liability Part. So Sum It Down gives211,000
ie,
Asset Liability Equity Accounts Receivable- 42,000 Trademark - Notes Payable -96,000 Equipment -85,000 Patent -19,000 Salary Payable -23,000 inventory -? Dividemd payable-11,000 cash -26,000 Accounts payable -81,000 Land -? Total 211,000