Using the following data make a Balance Sheet of VVV company: VWV Company Balance Sheet December 31,
Question:
Using the following data make a Balance Sheet of “VVV company”:
VWV Company | |||||
Balance Sheet | |||||
December 31, 20XX | |||||
| | | | | |
Assets | | | Liabilities | | |
| | | | | |
Current assets | | | Current liabilities | | |
| | | | | |
| Cash | $72,000 | | Accounts payable | $12,000 |
| Accounts receivable | 18,000 | | Interest payable | 12,000 |
| Interest receivable | 1,000 | | | |
| Inventory | 60,000 | | | |
Total current assets | | $151,000 | Total current liabilities | | $24,000 |
| | | | | |
Long-term assets | | | Long-term liabilities | | |
| | | | | |
| Equipment (net of depreciation) | $128,000 | | Note payable | 100,000 |
| | | | | |
Total long-term assets | | $128,000 | Total long-term liabilities | | $100,000 |
| | | | | |
| | | Equity | | |
| | | | Common stock | 10,000 |
| | | | Paid-in capital | 50,000 |
| | | | Retained earnings | 95,000 |
| | | | | |
| | | Total equity | | $155,000 |
| | | | | |
Total assets | | 279,000 | Total liabilities and equity | | $279,000 |
| | | | | |
| | | | | |
Required:
• Recreate the balance sheet in an Excel spreadsheet. Use cell formula to add and subtract numbers. Add a column next to the balance sheet for answers to the questions listed below.
• Is accounts payable larger or smaller than accounts receivable? What is the difference? What do the numbers indicate? Explain.
• What does "equipment net of depreciation" mean?
• Are payables short-term or long-term?
• Determine total liabilities.
• Determine net short-term assets or liabilities.
• Determine the total amount owed by VWV at the end of the year.
• How do we know that the above is a corporate (not a sole proprietor) balance sheet?Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso