At December 31, 2010, Tommer Products has cash of $12,000, receivables of $5,000, and inventory of $42,000.

Question:

At December 31, 2010, Tommer Products has cash of $12,000, receivables of $5,000, and inventory of $42,000. The company’s equipment totals $82,000. Tommer owes accounts payable of $17,000, and long-term notes payable of $78,000. Common stock is $14,800.

Prepare Tommers balance sheet at December 31, 2010, complete with its proper heading. Use the accounting equation to compute retained earnings.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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...