Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exquisite jewelers is developing its annual financial statement for 2012. The following amounts were correct at December 31, 2012; cash $58,000; accounts receivable, $71,000; merchandise

Exquisite jewelers is developing its annual financial statement for 2012. The following amounts were correct at December 31, 2012; cash $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,500; investments in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000; accumulated depreciation, store equipment, $19,000; accounts payable, $2,500; long-term note payable, $42,000; income taxes payable, $9000 retained earrings, $164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share). required: 1. Based on these data, prepare a December 31, 2012 balance sheet. Use the following major captions (list the individual items under these captions) a. Assets: Current Assets, Long-Term Investments, Fixed Assets, and Other Assets. b. Liabilities; Current Liabilities and Long-Term Liabilities. c. Stockholders' Equity: Contributed Capital and Retained Earnings. 2. What is the net book value of the store equipment? Explain what this value means

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting College Of Dupage Edition

Authors: Karen Wilken Braun, Wendy M. Tietz

3rd Edition

1269222430, 978-1269222433

More Books

Students also viewed these Accounting questions