Question

1.) Based on the following information, prepare a balance sheet. Current Assets = $15,000; Property, Plant & Equipment = $25,000; Accumulated Depreciation = $5,000; Accounts Payable = $5,000; Notes Payable = $5,000; Total Liabilities = $25,000

Answer 1

Ans.	Balance   Sheet
	Assets	Amount	Liabilities & Stockholder's equity	Amount
	Currrent assets	$15,000	Accounts payable	$5,000
			Notes payable	$5,000
	Property, Plant & Equipment	$25,000	Current liabilities	$10,000
	Less: Accumulated depreciation	-$5,000	Long term debt	$15,000
	Net Property, Plant & Equipment (b)	$20,000	Total liabilities	$25,000
			Stockholder's equity	$10,000
	Total Assets (A + B)	$35,000	Total Liabilities & Stockholder's equity	$35,000
	*Total liabilities is the sum of current liabiliites and Long term debt.
	* Long term debt = Total liabiliites - Current liabilities
	$25,000 - $10,000 =   $15,000
	* Stock holder's equity is the difference between Total assets and Total liabilities.
	because the Total of the balance sheet is equal from both side. So the balancing
	figure of stockholder's equity can be find out by using the following formula:
	Stockholder's equity = Total assets - Total liabilities
	$35,000 - $25,000 = $10,000