Question

In alphabetical order below are balance sheet items for Whispering Winds Corp. at December 31, 2019. Accounts payable Accounts receivable Cash Common stock $87,000 71,000 47,000 31.000 Prepare a balance sheet. (List Current Assets in order of liquidity.)

Answer 1

Solution

Balance Sheet
Assets
Current assets:
Cash	$      47,000.00
Accounts receivable, net	$      71,000.00
Total assets	$ 1,18,000.00
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
Accounts payable	$      87,000.00
Total liabilities	$      87,000.00
Stockholders' equity:
Common stock	$      31,000.00
Total stockholders' equity	$      31,000.00
Total liabilities and stockholders' equity	$ 1,18,000.00