Question

​12.​Use your knowledge of balance sheets to fill in the amounts missing in the text.

​Cash​$​50,000​Accounts payable​$​12,000

​Accounts receivable​​80,000​Notes payable​​50,000

​Inventory​​​ ​Total current liabilities​$​

​​Total current assets​$​​Long-term debt​​

​Gross P&E​​​ Total liabilities​$​

​Less accumulated​​​Common stock​​100,000

​​depreciation​​130,000​Paid-in capital​​250,000

​Net P&E​​$600,000​Retained earnings​​200,000

​Total assets​​​Total stockholders’ equity​

​​​​​Total liabilities and equity​$​830,000

Answer 1

Total assets = Total liabilities and equity
Total assets = $830,000

Total assets = Total current assets + Net P&E
$830,000 = Total current assets + $600,000
Total current assets = $230,000

Total current assets = Cash + Accounts receivable + Inventory
$230,000 = $50,000 + $80,000 + Inventory
Inventory = $100,000

Net P&E = Gross P&E - Accumulated depreciation
$600,000 = Gross P&E - $130,000
Gross P&E = $730,000

Total current liabilities = Accounts payable + Notes payable
Total current liabilities = $12,000 + $50,000
Total current liabilities = $62,000

Total stockholders’ equity = Common stock + Paid-in capital + Retained earnings
Total stockholders’ equity = $100,000 + $250,000 + $200,000
Total stockholders’ equity = $550,000

Total liabilities and equity = Total liabilities + Total stockholders’ equity
$830,000 = Total liabilities + $550,000
Total liabilities = $280,000

Total liabilities = Total current liabilities + Long-term debt
$280,000 = $62,000 + Long-term debt
Long-term debt = $218,000