Question

The balance sheet items of Kiner Company as of December 31, current year, follow in random order.

Land	$	90,000	Office equipment	$	14,000
Accounts payable		50,000	Building		240,000
Accounts receivable		60,000	Capital stock		75,000
Cash		40,000	Notes payable		210,000
			Retained earnings		?

a. Compute the amount for Retained earnings.

b. Prepare a balance sheet for the company.

Answer 1

Req a:
Total assets:
Cash		40000
Land		90000
Accounts receivable		60000
Office Equipment		14000
Building		240000
Total assets:			444000
Liabilities and Equity
Accounts payable		50000
Notes payable		210000
Capital Stock		75000
Total Liabilities and Equity			335000
Balance in Retained earnings			109000
Req b:
Balance Sheet:
Assets
Current assets:
Cash			40000
Accounts receivable			60000
Total Current assets:				100000
PP&E
Land			90000
Building			240000
Equipment			14000
Total PP&E				344000
Total Assets				444000
Liabilities:
Accounts payable				50000
Notes payable				210000
Total liabilities				260000
Stockholder's equity:
Capital Stock			75000
Retained earnings			109000
Total Stockholder's equity				184000
Total Liabilities and Stockholder's equity				444000