Prepare the balance-sheet for Donna Inc. based on the following information: At
ID: 2701406 • Letter: P
Question
Prepare the balance-sheet for Donna Inc. based on the following information: At the end of year 2012, the company had cash balance worth $ 210,000, accounts payable of $522,000, current liability of $714,000, current assets of $984,000. Tangible Net Fixed Assets and Intangible Net Fixed Assets were worth $4,380,000 and $876,000 respectively. Long-term liabilities and Total Liabilities are respectively $2,568,000 and $3,282,000. Common stock is $582,000.
a) Find out the following components:
i) Total Net Fixed Asset, ii) Total Assets, iii) Total Liabilities & Owner's Equity,
iv) Accumulated Retained Earnings, v) Notes Payable, and vi) Inventory balance
Explanation / Answer
Balance Sheet:
Assets:
Cash: $210,000
Inventory: $774,000
Total Current Assets: $984,000
Tangible Net Fixed Assets: $4,380,000
Intangible Net Fixed Assets: $876,000
Total Fixed Assets: $5,256,000
Total Assets: $6,240,000
Liabilities and Owner's Equity:
Accounts payable: $522,000
Notes payable: $192,000
Total Current liabilities: $714,000
Long term liabilities: $2,568,000
Total Liabilities: $3,282,000
Common Stock: $582,000
Accumulated retained earnings: $2,376,000
Total Liabilities + Owners Equity: $6,240,000
Total Net Fixed Asset = 4,380,000+876,000 = 5,256,000
Total Assets = 984,000+5,256,000 = 6,240,000
Total Liabilities + Owners Equity = Total Assets = 6,240,000
Accumulated Retained Earnings = Total Liabilities + Owners Equity - Total Liabilities - Common Stock = 6,240,000-3,282,000-582,000 = 2,376,000
Notes payable = Current liabilities - accounts payable = 714,000-522,000 = 192,000
Inventory balance = Current assets - cash = 984,000-210,000 = 774,000