Question

Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year:

Total assets	$	590,000
Total noncurrent assets		354,000
Liabilities:
Notes payable (8%, due in 5 years)		20,000
Accounts payable		54,000
Income taxes payable		12,000
Liability for withholding taxes		5,000
Rent revenue collected in advance		10,000
Bonds payable (due in 15 years)		99,000
Wages payable		10,000
Property taxes payable		6,000
Note payable (10%, due in 6 months)		13,000
Interest payable		500
Common stock		290,000

Answer 1

Diane Corporation

Balance sheet

Assets	$	Liabilities & Equity	$
		Current Liabilities:
Non-Current Assets	354000	Accounts payable	54000
		Income taxes payable	12000
Current Assets	236000	Liability for withholding taxes	5000
		Rent revenue collected in advance	10000
		wages payable	10000
		Property taxes payable	6000
		Note payable (10%, due in 6 months)	13000
		Interest payable	500
		Long term borrowings:
		Notes payable	20000
		Bonds payable	99000
		Shareholder's Equity
		Common stock	290000
		Retained Earnings	70500
Total	590000	Total	590000

Workings:

1. Current assets = Total assets (-) Non-current assets = $590,000-$354,000 = $ 236,000

2. Total Assets = Total Liabilities & Equity

3. Retained Earnings = Total Liabilities & Equity (-) [Total liabilities - Common Stock] = $ 590,000 - [$229,500 - $290,000] = $ 70,500. (Simply its a balance figure)