Answered

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Wolfpack Construction has the following account balances at the end of the year.

Accounts Balances Equipment $26,000
Accounts payable 3,000
Salaries expense 33,000
Common stock 11,000
Land 18,000
Notes payable 20,000
Service revenue 39,000
Cash 6,000
Retained earnings ?

Required:
Use only the appropriate accounts to prepare a balance sheet.


Sagot :

abiolataiwo2015

Answer:

Retained Earnings $16,000

Total assets $50,000

Total liabilities and equity $50,000

Explanation:

Preparation of appropriate accounts to prepare a balance sheet

BALANCE SHEET

ASSETS

Cash 3,000

Land 18,000

Equipment 26,000

Total assets $ 50,000

LIABILITIES

Accounts Payable 3,000

Notes payable 20,000

Total Liabilities 23,000

STOCKHOLDERS EQUITY

Common Stock 11,000

Retained Earnings 16,000

[(3,000+18,000+26,000)-(3,000+20,000+11,000]

Total Equity 27,000

Total liabilities and equity $50,000

Therefore the balance sheet include:

Total assets $50,000

Total liabilities and equity $50,000

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