In: Accounting
The following accounts were extracted from Salem Company by end of the year:
Accounts payable
Accounts receivable
Accumulated depreciation- Building
Accumulated depreciation-equipment
Bonds payable
Buildings
Cash
Copyright
Equipment
Inventory
Investment (long term
Investment in six-month securities
Capital
Land
Prepaid rennet
Revenue received in advance
Required:
Main items are as below:
Assets: It includes current assets, long-term investments, fixed assets, and intangible assets.
Liabilities: It includes current liabilities and long-term liabilities.
Equity: It includes capital.
An equation must be satisfied then, Assets = Liabilities + Equity
Balance sheet
(Classified)
Assets: |
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Current assets: |
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Cash |
$XXX |
|
Accounts receivable |
$XXX |
|
Investment short-term (6 months) |
$XXX |
|
Inventory |
$XXX |
|
Prepaid rent |
$XXX |
|
Total current assets |
$XXX |
|
Long-term investment |
$XXX |
|
Fixed assets: |
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Buildings |
$XXX |
|
Accumulated depreciation |
($XXX) |
|
Book value of buildings |
$XXX |
|
Equipment |
$XXX |
|
Accumulated depreciation |
($XXX) |
|
Book value of equipment |
$XXX |
|
Intangible assets: |
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Copyright |
$XXX |
|
Total assets |
$XXX |
|
Liabilities: |
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Current liabilities: |
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Accounts payable |
$XXX |
|
Revenue received in advance |
$XXX |
|
Total current liabilities |
$XXX |
|
Long-term liabilities: |
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Bonds payable |
$XXX |
|
Total liabilities |
$XXX |
|
Owners’ equity: |
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Capital |
$XXX |
|
Total liabilities and owners’ equity |
$XXX |