Question

At December 31, 2018, Diamond Corporation has cash of $55 million, accounts receivable of $19 million, and long-term assets of $42 million. The company owes accounts payable of $17 million and has a long-term note payable of $27 million. Diamond has common stock of $23 million and retained earnings of $49 million. Prepare Diamond Corporation's balance sheet at December 31, 2018, complete with its proper heading. Start with the heading and then complete the assets section of the statement and finally complete the liabilities and stockholders' equity section of the statement. (Enter all amounts in millions. Classify the balance sheet by selecting the proper title on all applicable subtotal lines. In the first part complete the assets section of the balance sheet. In the second part complete the liabilities and stockholders equity section of the balance sheet. If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Diamond Corporation Balance Sheet December 31, 2018 Assets (in millions) Current assets: Cash Accounts receivable

Answer 1

Balance Sheet of Diamond Corporation will be as follows:

Diomond Corporation Balance Sheet December 31, 2018. Assets (In millions) $ Current Assets: Cash Accounts Receivables Total Current Assets 55 19 74 Non-Current Assets: Long Term Assets Total Non-Current Assets 42 42 Total Assets 116 Current Liabilities: Accounts Payables Total Current Liabilities 17 17 Long Term Liabilities: Long Term Note Payable Total Long Term Liabilities 27 27 Equity Capital: Common Stook Retained Earnings Total Owner's Equity 23 49 72 Total Liabilities and owner's capital 116