Equipment 50,000 Common stock 40,000
Dividends 13,000 Retained earnings 39,000
Total assets $85,000 Total liabilities and
stockholders' equity $85,000
Instructions
Prepare a correct balance sheet.
Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 213
GABELLI COMPANY
Balance Sheet
December 31, 2022
______________________________________________________
Assets
Cash .................................................................................. $12,500
Accounts receivable 12,000
Supplies.................................................................................................... 9,500
Equipment................................................................................................. 50,000
Total assets $84,000
Solution 213 (Cont.)
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable ............................................................................ $18,000
Stockholders’ equity
Common stock ............................................................................ $40,000
Retained earnings.................................................................................................... 26,000* 66,000
Total liabilities and stockholders’ equity ............................................................................ $84,000
*$39,000 – $13,000
Ex. 214
The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Bates Corporation and Wilson Enterprises, are presented below for 2022.
Bates Corporation Wilson Enterprises
Beginning of year
Total assets $110,000 $130,000