Question

Given the following account information for Leong Corporation, prepare a balance sheet in report form for the company as of December 31, 2020 and answer the question below and other questions from the same balance sheet. All accounts have normal balances. Equipment 80,000 Interest Expense 5,000 Interest Payable 1,200 Retained Earnings 12/31/2020 259,180 Dividends 60,800 Land 142,150 Accounts Receivable 88,000 Bonds Payable 100,000 Notes Payable (due in 6 months) 30,000 Common Stock 50,000 Accumulated Depreciation - Equip. 20,000 Prepaid Advertising 6,000 Service Revenue 350,900 Buildings 90,600 Supplies 2,100 Income Taxes Payable 4,000 Utilities Expense 7,500 Advertising Expense 3,560 Salaries and Wages Expense 58,210 Salaries and Wages Payable 2,470 Accumulated Depr. - Bld. 12,000 Cash 70,000 Depreciation Expense 14,000 In the company’s balance sheet, how much were total liabilities?

Answer 1

                            In The Books of Leong Corporation

                    Balance sheet in report form for the company as of December 31, 2020

I. Assets	Amount $	Amount $
1. Current Assets
a.Cash	70,000
b.Accounts Receivable	88,000
c.Supplies	2,100
d. Prepaid Advertising	6,000
Total Current Assets		166,100
2. Non Current Assets
a. Land		142,150
b. Equipment	80,000
less: Accumulated depreciation- Equipment	(20,000)	60,000
c. Building	90,600
less: Accumulated depreciation- Bld	(12,000)	78,600
Total Assets		446,850
II. Liability and shareholders Equity
1. Current liabilities
a. Interest Payable	1,200
b. Notes Payable (due in 6 months)	30,000
c. Income Taxes Payable	4,000
d. Salaries and Wages Payable	2,470
Total Current Liabilities		37,670
2. Long term liabilites
a. Bonds Payable	100,000
Total Long term Liabilities		100,000
Total Liabilities		137,670
3. Shareholder's Equity
a.Common stock	50,000
b. Retained Earnings	259,180
Total Shareholder's Equity		309,180
Total Liability and shareholders Equity		446,850

Therefore total liabilities = $137,670