Question

Using the accounting equation, calculate the missing numbers on the Balance Sheet referenced by letters

Assets	year 1	year2
cash	$ 12,250	|$ 12,863
accounts receivable	$ 28900	A
prepaid expenses	$ 13450	$ 14,123
total assets	$ 54600	B
liabilities
accounts payable	C	$ 1,2600
salaries & wages payable	$ 2,800	D
total liabilities	$ 14,800	15540
shareholders equity
common shares	$6,000	$ 6,300
retained earnings	E	$ 60,770
total shareholders equity	$ 39800	$ 67,070

total liabilities & shareholders equity

F

$82,610 ,

Answer 1

Assets Cash accounts receivable prepaid expenses total assets Year 1 Year 2 $ 12,250 $ 12,863 $ 28,900 A $55,624 $ 13,450 $ 14,123 $ 54,600 B $82,610 liabilities accounts payable Salaries & wages payable Total Liabilities C $12,000 $ 12,600 $ 2,800 | D $2,940 $ 14,800 $ 15,540 Stockholders equity Common Shares $ 6,000 $ 6,300 Retained Earnings E $33,800 $ 60,770 Total stockholders equity $ 39,800 $ 67,070 Total liabilities and stockholders equity F $54,600 $ 82,610

Working notes: B Total assets = total liabilities and stockholders equity Total liabilities and stockholders equity = $82,610 Total assets = $82,610 A Total Assets = Cash + accounts receivables + prepaid expenses $82,610 = $12,863 + accounts receivables + $14,123 Accounts receivables = $82,610-$12,863-$14,123 = $55,624 C Total Liabilities = accounts payable + salaries & wages payable $14,800 = accounts payable +$2,800 accounts payable = $14,800 - $2,800 = $12,000 D Total Liabilities = accounts payable + salaries & wages payable $15,540 = $12,600 + salaries and wages payable Salaries and wages payable = $15,540 - $12,600 = $2,940 E Total stockholders equity = common shares + retained earnings $39,800 = $6,000 + retained earnings retained earnings = $39,800-$6,000 = $33,800 F Total assets = total liabilities and stockholders equity Total assets = $54,600 Total liabilities and stockholders equity = $54,600