Question

Prepare a 2018 balance sheet for Rogers Corp. based on the following information:

Cash = $260,000;

Patents and copyrights = $690,000;

Accounts payable = $350,000;

Accounts receivable = $179,000;

Tangible net fixed assets = $4,300,000;

Inventory = $255,000;

Notes payable = $180,000;

Accumulated retained earnings = $1,365,000;

Long-term debt = $1,530,000.

What is the common stock account balance for the company?

Answer 1

Common stock = Total equity - retained earnings

Total equity = Total assets - total liabilities

Total assets = cash +patents+ accounts receivables + fixed assets+ inventory+

=260,000+690,000+179,000+4,300,000+255,0000

=5,684,000

Total liabilities=accounts payable+ notes payable +debt

=. 350,000+180,000+1,530,000

= 2,060,000

Equity= 5,684,000 - 2,060,000 = 3,624,000

Common stock= 3,624,000 - 1,365,000

= 2,259,000