Question

Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash = $300,000; Patents and copyrights = $790,000; Accounts payable = $360,000; Accounts receivable = $139,000; Tangible net fixed assets = $3,700,000; Inventory = $225,000; Notes payable = $180,000; Accumulated retained earnings = $1,215,000; Long-term debt = $1,830,000. What is the common stock account balance for the company?

Answer 1

Calculation:

Total Assets = Cash + Accounts Receivable + Inventory + Net Fixed Assets + Patents and Copyrights
Total Assets = $300,000 + $139,000 + $225,000 + $3,700,000 + $790,000
Total Assets = $5,154,000

Total Liabilities = Accounts Payable + Notes Payable + Long Term Debt
Total Liabilities = $360,000 + $180,000 + $1,830,000
Total Liabilities = $2,370,000

Total Assets = Total Liabilities + Total Stockholders’ Equity
$5,154,000 = $2,370,000 + Total Stockholders’ Equity
Total Stockholders’ Equity = $2,784,000

Total Stockholders’ Equity = Common Stock + Accumulated Retained Earnings
$2,784,000 = Common Stock + $1,215,000
Common Stock = $1,569,000