Question

Toby Woods had a capital account in Woods & Company totaling $ 12,280 by year-end. The company’s only liabilities for the 2019 calendar year included Notes Payable, $18,750; Accounts Payable, $2,300; and Interest Payable, $1,500. The company’s asset balances were as follows: Building, $12,000 with $900 in accumulated depreciation; Accounts Receivable, $1,300; Short-Term Investments, $1,980; Land, $18,700; and Cash, $1,750. Prepare the company’s balance sheet

Answer 1

Woods & Company
BALANCE SHEET
	$	$
Assets
Current Assets
Cash	1,750.00
Accounts receivable	1,300.00
Short-Term Investments	1,980.00
Total current assets		5,030.00
Property, plant and equipment
Land	18,700.00
Building	12,000.00
Less: Accumulated depreciation	(900.00)
	11,100.00
Total property, plant, and equipment (18,700 + 11,100)		29,800.00
Total assets		34,830.00
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	2,300.00
Interest payable	1,500.00
Notes payable	18,750.00
Total liabilities		22,550.00
Stockholders’ equity
Owner's capital		12,280.00
Total stockholders’ equity		12,280.00
Total liabilities and stockholders’ equity		34,830.00