The bookkeeper for Packard's Country Music Bar left this incomplete balance sheet. Packard's working capital is $90,000

Question:

The bookkeeper for Packard's Country Music Bar left this incomplete balance sheet. Packard's working capital is $90,000 and its debt to assets ratio is 40 percent.

Assets

Current assets

Cash .............................................................................$ 21,000

Accounts receivable............................................................. 42,000

Inventory.............................................................................. (A)

Prepaid expenses................................................................... 9,000

Total current assets.................................................................. (B)

Long-term assets

Building................................................................................ (C)

Less: Accumulated depreciation..............................................(39,000)

Total long-term assets...........................................................210,000

Total assets............................................................................$ (D)

Liabilities and Stockholders' Equity

Liabilities

Current liabilities

Accounts payable.............................................................. $ (E)

Notes payable................................................................ 12,000

Income tax payable.......................................................... 10,500

Total current liabilities...................................................... 37,500

Long-term liabilities

Mortgage payable................................................................. (F)

Total liabilities......................................................................(G)

Stockholders' equity

Common stock............................................................... 105,000

Retained earnings..................................................................(H)

Total stockholders' equity......................................................... (I)

Total liabilities and stockholders' equity...................................... $(J)

Required

Complete the balance sheet by supplying the missing amounts.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Fundamental Managerial Accounting Concepts

ISBN: 978-1259569197

8th edition

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds

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