The bookkeeper for Andy’s Country Music Bar went insane and left this incomplete balance sheet. Andy’s working capital is $95,000 and its debt to assets ratio is 40 percent.
Required:
Complete the balance sheet by supplying the missing amounts. (Round your answers to the nearest whole dollar amount. Omit the "$" sign in your response.)
Assets
Current Assets
Cash $21,000
Accounts Receivable 42,000
Inventory________ $
Prepaid Expenses 9,000
Total Current Assets________ $
Long-Term Assets
Building ___________$
Less: Accumulated Depreciation (39,000)
Total Long-Term Assets 210,000
Total Assets______________ $
Liabilities and Stockholder's Equities
Liabilities
Current Liabilities
Accounts Payable_________ $
Notes Payable 12,000
Income Tax Payable 10,500
Total Current Liabilities 37,500
Long-Term Liabilities
Mortgage Payable________ $
Total Liabilities___________ $
Stockholders’ Equity
Common Stock 105,000
Retained Earnings________ $
Total Stockholders’ Equity__________ $
Total Liabilities and Stockholders’ Equity___________ $
Any help is greatly appreciated! Been working on it for hours!
vdvsd
To complete the balance sheet, we need to find the missing amounts for the inventory, building, accounts payable, mortgage payable, retained earnings, and the total assets, liabilities, and stockholders' equity. Let's go step by step:
Step 1: Find the missing amount for inventory.
The current assets section of the balance sheet lists the following amounts:
- Cash: $21,000
- Accounts Receivable: $42,000
- Prepaid Expenses: $9,000
The working capital is given as $95,000, which is the excess of current assets over current liabilities. We can calculate the missing amount for inventory by subtracting the sum of the given current assets from the working capital:
$95,000 = $21,000 + $42,000 + $9,000 + Inventory
Solving for Inventory:
Inventory = $95,000 - ($21,000 + $42,000 + $9,000)
Step 2: Find the missing amount for the building.
The long-term assets section of the balance sheet lists the following amounts:
- Building: Missing Amount
- Less: Accumulated Depreciation: ($39,000)
The total long-term assets are given as $210,000. We can find the missing amount for the building by adding the accumulated depreciation to the total long-term assets:
$210,000 = Missing Amount + ($39,000)
Solving for the Missing Amount:
Missing Amount = $210,000 - ($39,000)
Step 3: Find the missing amount for accounts payable.
The current liabilities section of the balance sheet lists the following amounts:
- Accounts Payable: Missing Amount
- Notes Payable: $12,000
- Income Tax Payable: $10,500
The total current liabilities are given as $37,500. We can find the missing amount for accounts payable by subtracting the sum of the given current liabilities from the total current liabilities:
$37,500 = Missing Amount + ($12,000 + $10,500)
Solving for the Missing Amount:
Missing Amount = $37,500 - ($12,000 + $10,500)
Step 4: Find the missing amount for the mortgage payable.
The long-term liabilities section of the balance sheet lists the following amounts:
- Mortgage Payable: Missing Amount
The debt to assets ratio is given as 40 percent. We can calculate the missing amount for the mortgage payable by multiplying the total assets by the debt to assets ratio:
Total Assets = Total Liabilities + Stockholders' Equity
Total Liabilities = Debt to Assets Ratio * Total Assets
Missing Amount = Debt to Assets Ratio * Total Assets
Step 5: Find the missing amount for retained earnings.
The stockholders' equity section of the balance sheet lists the following amounts:
- Retained Earnings: Missing Amount
To find the missing amount for retained earnings, we can subtract the sum of common stock and total stockholders' equity from total assets:
Missing Amount = Total Assets - Common Stock - Total Stockholders' Equity
Step 6: Find the total assets, liabilities, and stockholders' equity.
To find the missing amounts for the total assets, liabilities, and stockholders' equity, we add up the respective sections of the balance sheet.
Once we calculate the missing amounts for each of the variables, we can fill in the incomplete balance sheet.
(Note: Since the exact dollar amounts were not given, I cannot provide an exact solution. You would need to perform the calculations yourself to determine the missing amounts.)