Change (60,000) 210,000 150,000
Ending $600,000 = $ 90,000 (3) + $510,000
Be. 201
Reinhardt’s Carpet Cleaning has the following balance sheet items:
Buildings Notes Payable
Accounts Payable Common Stock
Cash Retained Earnings
Supplies Equipment
Accounts Receivable
Identify which items are (1) Assets
(2) Liabilities
(3) Stockholders’ Equity
Ans: N/A, LO: 3, Bloom: C, Difficulty: Medium, Min: 5, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
Solution 201
(1) Assets—Buildings, Cash, Supplies, Accounts Receivable, Equipment
(2) Liabilities—Accounts Payable, Notes Payable
(3) Stockholders’ Equity—Common Stock, Retained Earnings
Be. 202
On June 1, 2022, Shaw Company prepared a balance sheet that shows the following:
Assets (no cash) .......................................................................... $125,000