Question

5. Beginning (1/1/2019) retained earnings (RE) is $100. Ending balances (12/31/2019) are: Additional Paid In Capital (APIC) 190; Cash 200; Notes Payable ((N/P) long-term) 50; Unearned Revenue 30; Net Income 150; Accounts Receivable (A/R) 100; Supplies (asset) 50; Dividends 50; Prepaid Insurance 50; Equipment 120; Accounts Payable (A/P) 20; Accumulated Depreciation 20. Please prepare a 12/31/2019 Balance Sheet for ABC Company in good form.

Answer 1

BALANCE SHEET OF ABC COMPANY AS ON 12/31/2019
ASSETS
Cash		$200
Accounts Receivable		$100
Supplies		$50
Prepaid Insurance		$50
Equipment (net)		$100
TOTAL ASSETS		$500
LIABILITIES AND SHAREHOLDER'S EQUITY
LIABILITIES
Notes payable	$50
Accounts payable	$20
Unearned Revenue	$30
Total liabilities		$100
SHAREHOLDER'S EQUITY
Common stock	$200
Retained Earnings	$200
Total shareholders equity		$400
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY		$500.

- Equipment (net) = equipment - accumulated depreciation = $120 - $20 = $100.

*Let us assume that common stock balance at beginning is $10.

- Common stock

= Balance at the beginning 1/1/2019 + Additional paid in capital

= $10 + $190 = $200

- Retained earnings

= Balance at the beginning + net income - Dividends

= $100 + $150 - $50 = $200.

_____×_____

ALL THE BEST

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