Question

At December 31, 20X0, Antibes Products has cash of 25,000, receivables of 32,000 and inventory of 40,000. The company’s equipment totals 49,000. The company owes accounts payable of 41,000 and long term notes payable of 50,000. Share capital amounts to 55,000

Requirements

1       Complete the company’s balance sheet at December 31, 20X0

2       Use the accounting equation to compute retained earnings

Answer 1

Antibes Products
Balance Sheet
At December 31, 20X0
Assets
Non Current Asset
Equipment	$              49,000
Current Assets
Cash and cash equivalents	$              25,000
Accounts Receivable	$              32,000
Inventory	$              40,000
Total Assets	$          1,46,000
Liabilities and Shareholders Equity
Shareholders Equity
Contributed Capital	$              55,000
Retained Earnings	$                         -
Total Shareholders Equity	$              55,000
Non Current Liabilities
Long term notes payable	$              50,000
Total Non Current Liabilities	$              50,000
Current Liabilities
Account Payable	$              41,000
Total Current Liabilities	$              41,000
Total Liabilities and Shareholders Equity	$          1,46,000