Question

Please solve #4

(images below for reference)

Sparty, Corporation has been operating for two years. The December 31, 2018 account balances are: Cash Accounts Receivable Inventory Short-term Investments Equipment Land $250,000 65,000 29,000 20,000 180,000 210,000 | Accounts Payable Salaries Payable Notes Payable - long term Contributed Capital Retained Earnings $190,000 45,000 175,000 220,000 124,000 During the year 2019, the company had the below activities. Note that none of these activities should impact the income statement, only the balance sheet; we are assuming for simplicity that the company did not have any revenues or expenses during 2019. a. Collected $15,000 cash on open accounts receivable from customers. b. Bought additional inventory for $2,000 on account. c. Received a $70,000 loan from the bank, payable in four years. d. Purchased additional short-term investments for $5,000 cash. e. Returned some detective inventory to a supplier for a full cash refund of $1,000. f. Ordered supplies worth $9,000 from Concord Supplies to be delivered next month. g. Paid off $25,000 of notes payable a year early. Ignore interest. h. Purchased additional equipment costing $40,000; paying $10,000 in cash and signing a promissory note to pay the balance in three years. Issued 20,000 shares of stock, receiving $100,000 in cash and land valued at $8,000 from investors, j. Paid off $30,000 of salaries owed from the prior year.

Answer 1

#4:

Cash			Accounts receivable			Inventory
$ 250,000.00	$      5,000.00		$    65,000.00	$    15,000.00		$    29,000.00	$      1,000.00
$    15,000.00	$    25,000.00					$      2,000.00
$    70,000.00	$    10,000.00
$      1,000.00	$    30,000.00
$ 100,000.00
$ 366,000.00			$    50,000.00			$    30,000.00
Short-Term investment			Equipment			Land
$    20,000.00			$ 180,000.00			$ 210,000.00
$      5,000.00			$    40,000.00			$      8,000.00
$    25,000.00			$ 220,000.00			$ 218,000.00
Accounts payable			Salaries payable			Notes payable-Long term
	$ 190,000.00		$    30,000.00	$    45,000.00		$    25,000.00	$ 175,000.00
	$      2,000.00						$    70,000.00
							$    30,000.00
	$ 192,000.00			$    15,000.00			$ 250,000.00
Contributed Capital			Retained Earnings
	$ 220,000.00			$ 124,000.00
	$ 108,000.00
	$ 328,000.00			$ 124,000.00

Amounts in bold are Ending balances.