Question

The bookkeeper for Rooney's Country Music Bar left this incomplete balance sheet. Rooney's working capital is $103,000 and its debt to assets ratio is 30 percent. Required Complete the balance sheet by supplying the missing amounts. $ 24,000 42,000 12,000 (43,000) 221,000 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term assets Building Less: Accumulated depreciation Total long-term assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Notes payable Income tax payable Total current liabilities Long-term liabilities Mortgage payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,000 8,700 36,500 92,000

Answer 1

$ 24,000 S 42.000 $ 61,500 $ 12,000 $ 139,500 Assets Current assets Cash Accounts Receivables Inventory Prepaid Expense Total Current assets Long term assets Building Less: Accumulated depreciation Total Long term assets Total assets Liabilities and stockholders' Equity Liabilities Current Liabilities Accounts payable Notes payable Income tax payable Total Current Liabilities $264,000 $ (43,000) $221,000 $360,500 $ 20,800 S 7,000 $ 8.700 $ 36,500

$ 71,650 $ 108,150 Long-term liabilities Mortagage payable Total Liabilities Stockholders' equity Common stock Retained Earnings Total Stockholders' equity Total Liabilities and stockholders' equity $ 92.000 $ 160,350 $ 252,350 $360,500 Working Notes: Working Capital = Current assets - Current liabilities $103,000 = Current assets - $36,500 Current assets =$103,000+$36,500 = $139,500 Current assets = Cash + Accounts Receivables + Inventory+Prepaid expenses $139,500 = $24.000+$42,000+Inventory +$12.000 Inventory =$139,500-$24,000-$42,000-$12,000 =$61,500 Total Assets = Current assets + Long term assets Total assets = $139,500+$221,000 = $360,500 Total long term assets = Building - accumulated depreciation $221,000 = Building - $43,000 Building = $221,000+$43,000 = $264,000

Current liabilities = Accounts payable + Notes payable+Income tax payable $36,500 = accounts payable + $7,000+$8,700 Accounts payable = $36,500-$7,000-$8,700 = $20.800 Debt to assets ratio = Total liabilities/ total assets .30 = Total liabilities/$360,500 Total liabilities = $360,500*30% = $108.150 Total liabilities = Total current liabilities + Mortagage payable $108,150 = $36,500 + Mortagage payable Mortagage payable = $108,150-$36,150 = $71,650 Total assets = Total liabilities and stockholders equity Total liabilities and stockholders equity = $360,500 Total liabilities and stockholders equity = Total liabilities + Total stockholders equity $360,500 = $108,150 + Total stockholders equity Total stockholders equity = $360,500-$108.150 = $252,350 Total stockholders equity = Common stock + retained earnings $252,350 = $92,000 + Retained Eranings Retained earnings = $252,350-$92.000 = $160.350