Question
Use the following data to determine the total dollar amount of assets to be classified as investments. Carne Auto Supplies Balance Sheet Dec, 31, 2014
Use the following data to determine the total dollar amount of assets to be classified as investments.
Carne Auto Supplies Balance Sheet Dec, 31, 2014
ASSETS
Cash | $35,000 |
A/R | $50,000 |
Inventory | $70,000 |
Prepaid Insurance | $40,000 |
Stock Investment | $90,000 |
Land | $95,000 |
Building | $115,000 |
Less accumulating depreciation | $30,000 |
Net book value of building | $85,000 |
Trademark | $70,000 |
Total Assets | $535,000 |
LIABILITES
A/P | $65,000 |
Salaries & Wages Payable | $75,000 |
Mortgage Payable | $90,000 |
Total Liabilities | $165,000 |
STOCKHOLDER EQUITY
Common Stock | $120,000 |
Retained Earnings | $250,000 |
Total stock holders Equity | $370,000 |
Total Liab &Stockholders Equity | $535,000 |
a.) 0
b.) $160,000
c.) $90,000
d.) $140,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started