Answer to Question #263327 in Accounting for Another you

Question

A. Compute the missing information to prepare the Balance sheet given the following data.

a. Assets:

• Cash - 7,000.00
• Accounts Receivable - 600.00
• Inventory - 700.00
• Equipment - 1,000.00
• Total assets - ?

b. Liabilities:

• Accounts Payable - 1,900.00
• Loan Payable - ?
• Total Liabilities - 5,400.00

c. Equity:

• Owner's Equity - 2,700.00
• Retained Earnings - 1,200.00
• Total Equity - ?

Answer 1

a)Total assets=7,000+600+700+1,000=9,300

b)Loans payable=5,400-1,900=3,500

c)Total equity=2,700+1,200=3,900