With what's given, how did we get to that Balance sheet? Please help. Final is coming up soon AssetsLiabilitiesCash22,500Accounts Payable8,200Inventory28,000S/T Notes Payable15,000Accounts Receivable6,000Unearned Revenue2,500Office Supplies200Short Term25,000Total Current Liabilities25,700InvestmentsTotal Current Assets81,700Owner's EquityCommon Stock56,000Total Owner's Equity56,000Total Liabilities & Owner'sTotal Assets81,70081,700Equity 13. The company began the year with the following balances:Sales$25,000Accounts Receivable$12,000Inventory$15,000Accounts Payable$3,000S/T Notes Payable$20,000Interest Payable$1,000Taxes Payable$2,000Common Stock$26,000A. Record journal entries for the following transactions.B. Determine the balance for each account.C. Prepare a balance sheet.a. Collected $6,000 owed from customersb. Purchased $13,000 of inventory on accountc. Repaid $5,000 to the bankd. Paid the total amount owed for intereste. Paid one half of the total amount owed to suppliersf. Purchased office supplies on account for $200 (not used this period)g. Received $2,500 from a customer who will be shipped inventory next monthh. Paid the entire amount owed to the government for income taxesi. Sold part of the company to investors for $30,000j. Invested $25,000 of excess cash in a short term investment

The final accounts are prepared using balance from Trial balance.

Answered: 13. The company began the year with the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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With what's given, how did we get to that Balance sheet? Please help. Final is coming up soon

Assets
Liabilities
Cash
22,500
Accounts Payable
8,200
Inventory
28,000
S/T Notes Payable
15,000
Accounts Receivable
6,000
Unearned Revenue
2,500
Office Supplies
200
Short Term
25,000
Total Current Liabilities
25,700
Investments
Total Current Assets
81,700
Owner's Equity
Common Stock
56,000
Total Owner's Equity
56,000
Total Liabilities & Owner's
Total Assets
81,700
81,700
Equity

13. The company began the year with the following balances:
Sales
$25,000
Accounts Receivable
$12,000
Inventory
$15,000
Accounts Payable
$3,000
S/T Notes Payable
$20,000
Interest Payable
$1,000
Taxes Payable
$2,000
Common Stock
$26,000
A. Record journal entries for the following transactions.
B. Determine the balance for each account.
C. Prepare a balance sheet.
a. Collected $6,000 owed from customers
b. Purchased $13,000 of inventory on account
c. Repaid $5,000 to the bank
d. Paid the total amount owed for interest
e. Paid one half of the total amount owed to suppliers
f. Purchased office supplies on account for $200 (not used this period)
g. Received $2,500 from a customer who will be shipped inventory next month
h. Paid the entire amount owed to the government for income taxes
i. Sold part of the company to investors for $30,000
j. Invested $25,000 of excess cash in a short term investment

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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