problem: From the following accounts & amounts create a balance sheet for Prince Company for December 31, 2007. You must find out the money for retained earnings to complete the balance sheet.
|
Accounts Payable
|
61,250
|
|
Accounts Receivable
|
70,500
|
|
Building
|
50,000
|
|
Capital Stock
|
50,000
|
|
Cash
|
64,000
|
|
Equipment
|
30,000
|
|
Insurance Expense
|
5,000
|
|
Land
|
125,000
|
|
Notes Payable
|
175,000
|
|
Sales Revenue
|
25,000
|
|
Salaries Expense
|
20,000
|
On April 30, 2007, balance sheet of Japan Collectibles showed total assets of $800,000, total liabilities of $500,000, and owners' equity of $300,000. The following transactions occurred in May of 2007:
[A] Capital stock was issued in exchange for dollar 175,000 cash.
[B] The business purchased machine for $380,000, paying $180,000 cash & issuing a note payable for $200,000.
[C] The business paid off dollar 80,000 of its accounts payable.
[D] The business collected dollar 64,000 of its accounts receivable.