The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014:
Accounts payable $ 18,000
Accounts receivable 11,000
Accumulated depreciation – equipment 28,000
Advertising expense 21,000
Cash 15,000
Owner’s capital (1/1/14) 102,000
Owner’s drawings 14,000
Depreciation expense 12,000
Insurance expense 3,000
Note payable, due 6/30/15 70,000
Prepaid insurance (12-month policy) 6,000
Rent expense 17,000
Salaries and wages expense 32,000
Service revenue 133,000
Supplies 4,000
Supplies expense 6,000
Equipment 210,000
What is the total liabilities of the Postal Service as of December 31, 2014?
The total liabilities of the Postal Service as of December 31, 2014 is $98,000 ($18,000 + $11,000 + $70,000).
To organize the information:
1. Assets:
- Cash: $15,000
- Accounts receivable: $11,000
- Prepaid insurance (12-month policy): $6,000
- Supplies: $4,000
- Equipment: $210,000
- Accumulated depreciation – equipment: $28,000
2. Liabilities:
- Note payable, due 6/30/15: $70,000
- Accounts payable: $18,000
3. Equity:
- Owner’s capital (1/1/14): $102,000
- Owner’s drawings: $14,000
4. Revenues:
- Service revenue: $133,000
5. Expenses:
- Advertising expense: $21,000
- Depreciation expense: $12,000
- Insurance expense: $3,000
- Rent expense: $17,000
- Salaries and wages expense: $32,000
- Supplies expense: $6,000
Please note that the information provided does not include any calculations or further analysis.
To analyze the information provided, we can break it down into different categories:
1. Assets:
- Cash: $15,000
- Accounts receivable: $11,000
- Prepaid insurance: $6,000
- Supplies: $4,000
- Equipment: $210,000
2. Liabilities:
- Accounts payable: $18,000
- Note payable (due 6/30/15): $70,000
3. Equity:
- Owner's capital (as of 1/1/14): $102,000
- Owner's drawings: $14,000
4. Revenues:
- Service revenue: $133,000
5. Expenses:
- Advertising expense: $21,000
- Depreciation expense: $12,000
- Insurance expense: $3,000
- Rent expense: $17,000
- Salaries and wages expense: $32,000
- Supplies expense: $6,000
Now, we have organized the financial statement items into specific categories. This breakdown allows us to understand the financial position and performance of the Postal Service.
Note: These figures provide a snapshot of the Postal Service's financial condition on December 31, 2014. For a more comprehensive analysis, additional information such as revenue and expense trends, cash flow statements, and comparative financial statements for previous years would be necessary.