Question

eBook Problem 9-02 Given the following information, construct the firm’s balance sheet: Cash and cash equivalents $ 490,000 Accumulated depreciation on plant and equipment 1,040,000 Plant and equipment 4,200,000 Accrued wages 340,000 Long-term debt 4,620,000 Inventory 6,930,000 Accounts receivable 4,620,000 Preferred stock 540,000 Retained earnings 7,602,000 Land 1,380,000 Accounts payable 1,560,000 Taxes due 200,000 Common stock $ 14 par Common shares outstanding 102,000 Current portion of long-term debt $ 290,000 Round your answers to the nearest dollar. Corporation X Balance Sheet as of XX/XX/XX Assets Liabilities and Owners' Equity Cash and cash equivalents $    Accounts payable $    Accounts receivable    Taxes due    Inventory    Accrued wages     Total current assets $    Current portion of long-term debt $    Land     Total current liabilities    Plant and equipment    Long-term debt    Preferred stock    Common stock    Retained earnings     Total shareholders’ equity     Total assets $     Total liabilities and shareholders’ equity $

Answer 1

- Constructing the firm’s Balance Sheet:-

ASSETS	Amount in $	LIABILITIES & Equities	Amount in $
Cash	490,000.00	Accounts payable	1,560,000.00
Accounts receivables	4,620,000.00	Tax Due	200,000.00
Inventory	6,930,000.00	Accrued Wages	340,000.00
Total Current Assets	12,040,000.00	Current portion of long-term debt	290,000.00
		Total current liabilities	2,390,000.00
Land	1,380,000.00	Long-term debt	4,620,000.00
Net Plant and Equipment (Note-1)	3,160,000.00	Preferred stock	540,000.00
		Common stock (note-2)	1,428,000.00
		Retained earnings	7,602,000.00
		Total shareholders’ equity	9,570,000.00
TOTAL ASSETS	16,580,000.00	TOTAL LIABILITIES AND OWNER"S EQUITY	16,580,000.00

Note-1. Net Plant & Equipment = Plant & Equipment - Accumulated depreciation on plant and equipment

= $4,200,000 - $1040,000

Net Plant & Equipment = $3160,000

Note-2. Common stock = Par Value per share*No of oustanding

Common stock = $14*102,000 = $1428,000

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