Debit Credit Accounts payable.. Accounts receivable. Accumulated depreciation, building Accumulated depreciation, equipment. . Additional paid-in capital.. Advertising payable. Building... Cash Common stock Equipment Inventory. Investments Land.. Note payable-Colorado Savings and Loan (secured by lien on land and building) . Note payable-First National Bank (secured by equipment)... Payroll taxes payable.... Retained earnings (deficit). . Salaries payable (owed equally to two employees). $ 33,000 $ 25,000 50,000 16,000 8,000 4,000 80,000 1,000 50,000 30,000 100,000 15,000 10,000 70,000 150,000 1,000 126,000 5,000 Totals..... $387,000 $387,000
Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop in revenues, the company is now insolvent. The entire inventory can be sold for only $33,000. Following is a
Company officials believe that 60 percent of the
Prepare a statement of financial affairs for Lynch, Inc., as of March 14, 2017.
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