Question

You are provided with the following information for Wildhorse Co., effective as of its April 30, 2017, year-end Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Cost of goods sold Depreciation expense Dividends Equipment Income tax expense Income taxes payable Insurance expense Interest expense Inventory Land Mortgage payable Notes payable Prepaid insurance Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Sales revenue Stock investments (short-term) $924 990 670 1,450 1,440 1,150 245 415 2,600 255 225 300 490 1,147 3,280 3,680 241 150 1,600 610 312 5,280 1,290

Answer 1

Wildhorse Company

Balance sheet

Assets
Current assets
Cash	1,450
Stock investments (Short term)	1,290
Accounts receivable	990
Inventory	1,147
Prepaid insurance	150
Total current assets	5,027
Property, plant and equipment
Equipment	2,600
Less: Accumulated depreciation	(670)
Land	3,280
Property, plant and equipment, net	5,210
Total assets	10,237
Liabilities and stockholders' equity
Current liabilities
Notes payable	241
Accounts payable	924
Salaries and wages payable	312
Income tax payable	225
Total current liabilities	1,702
Long term liabilities
Mortgage payable	3,680
Total long term liabilities	3,680
Stockholders' equity
Common stock	1,440
Retained earnings	3,415
Total stockholders' equity	4,855
Total liabilities and stockholders' equity	10,237

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