Question

Construct a balance sheet for Sophie's Sofas given the following data, including shareholders' equity. = = Cash balances Inventory of sofas Store and property Accounts receivable Accounts payable Long-term debt $ 15,000 $250,000 $150,000 $ 27,000 $ 22,000 $220,000 = = BALANCE SHEET OF SOPHIE'S SOFAS Liabilities & Shareholders' Equity Assets Total assets 0 Total liabilities & shareholders' equity

Answer 1

Solution:

BALANCE SHEET OF SOPHIE`S SOFAS
Assets		Liabilities & Shareholders` Equity
Cash	$              15,000	Accounts payable	$          22,000
Accounts receivable	$              27,000	Long -term Debt	$        220,000
Inventory of sofas	$            250,000
Stores and property	$            150,000	Shareholders` equity (balancing figure)	$        200,000
Total Assets	$            442,000	Total Liabilities & shareholders` equity	$        442,000

Notes:

1) As per the information provided, we have considered balancing figure as Shareholders equity and prepared the balance sheet.