Question

The following information was taken from the accounting
records of CJTR Company as of December 31, 2020:

Accounts Payable ..........       ?
Accounts Receivable .......   $44,000
Building ..................   $68,000
Cash ......................   $17,000
Common Stock ..............   $56,000
Cost of Goods Sold ........   $41,000
Dividends .................      ?
Equipment .................   $79,000
Interest Revenue ..........   $40,000
Inventory .................   $63,000
Land ......................   $82,000
Notes Payable .............   $67,000
Rent Expense ..............   $23,000
Retained Earnings .........      ?
Salaries Expense ..........   $52,000
Salaries Payable ..........   $34,000
Sales Revenue .............   $94,000
Supplies ..................   $23,000
Trademark .................   $10,000

Additional information:
1)  At January 1, 2020, CJTR Company reported total
    assets of $223,000; total liabilities of $118,000;
    and common stock of $40,000.

2)  20% of CJTR’s 2020 net income was paid to stockholders
    as dividends.

Calculate the balance in the accounts payable account at
December 31, 2020.

Answer 1

CJTR Company
Statement of Opening retained earnings
Particulars	Amount $
Opening Assets	223,000.00
Less:
Opening liabilities	118,000.00
Opening common stock	40,000.00
Opening retained earnings	65,000.00
Income Statement
Particulars	Amount $
Sales revenue	94,000.00
Interest revenue	40,000.00
Total revenue	134,000.00
Less: Expenses
Cost of Goods Sold	41,000.00
Rent	23,000.00
Salaries expense	52,000.00
Total Expenses	116,000.00
Net Income	18,000.00
Dividend at 20%	3,600.00
Statement of Closing retained earnings
Particulars	Amount $
Opening retained earnings	65,000.00
Add: Net Income	18,000.00
Less: Dividend	3,600.00
Retained earnings at December 31, 2020	79,400.00
Balance in the accounts payable account at December 31, 2020.	Amount $
Accounts Receivable	44,000.00
Building	68,000.00
Cash	17,000.00
Equipment	79,000.00
Inventory	63,000.00
Land	82,000.00
Supplies	23,000.00
Trademark	10,000.00
Total Assets	386,000.00
Less:
Common Stock	56,000.00
Notes Payable	67,000.00
Salaries Payable	34,000.00
Retained earnings at December 31, 2020	79,400.00
Balance in the accounts payable account at December 31, 2020	149,600.00