Question

1. Follow Table 8.1 on page 180 to determine a balance sheet for OU Engineering Foundations, using the following data. • The organization has little debt of $850,000. • The current balance of accounts payable is $250,000. • Federal taxes owed are $120,000. State taxes owed are $80,000. City taxes owed are $50,000. Unemployment taxes owed are $25,000. Real property taxes owed are $25,000. • The board of directors demands to have 90 days cash on hand, which is $250,000 • Securities held are $320,000. • Accounts receivable are $230,000. • The organization has a positive balance with suppliers of $5,000. • Recent inventory indicates finished goods value to be $700,000; work in progress is $300,000; and raw materials are $50,000. • The property is valued at $3,100,000. • Depreciation/depletion of plant and equipment is $2,250,000.

Just want to see what a simple balance sheet looks like with these items listed on it...

Answer 1

ASSETS	AMOUNT
CASH	250,000
ACCOUNTS RECEIVABLES	230,000
INVENTORY FINISHED GOODS WORK IN PROGRESS RAW-MATERIALS	700,000 300,000 50,000 1,050,000
PLANT PROPERTY AND EQUIPMENT 3,100,000 LESS-DEPRECIATION (2,250,000)	850,000
ADVANCE PAYMENTS TO SUPPLIERS	5000
SECURITIES HELD	320,000
TOTAL	2,705,000
LIABILITIES
CAPITAL(BALANCING FIGURE)	1,305,000
DEBT	850,000
ACCOUNTS PAYABLE	250,000
FEDERAL TAXES AND OTHER TAXES	300,000
TOTAL	2,705,000

THIS IS THE SIMPLE BALANCE SHEET

ASSUMPTIONS MADE :

THAT THE DEPRECIATION VALUE IS THE ACCUMULATED DEPRECIATION AND HENCE IT IS DEDUCTED FROM THE TOTAL PROPERTY VALUE.

AS NO OTHER INFORMATION IS AVAILABLE CAPITAL FIGURE IS DRAWN BASED ON THE ACCOUNTING EQUATION ASSETS = LIABILITIES + EQUITY