George’s Pizzeria has the following information as of December 31, 2012:cash, $2,000; pizza ovens, $25,000; furniture, $12,500; accounts payable,$3,500; notes payable, $12,500; accumulated depreciation, $10,000; wagespayable, $1,500; taxes payable, $2,500; and equipment loan, $18,000.Construct a balance sheet for George. Do you think he has a problem withhis current balance sheet? If so, what is it?
George’s Pizzeria has the following information as of December 31, 2012:cash, $2,000; pizza ovens, $25,000; furniture, $12,500; accounts payable,$3,500; notes payable, $12,500; accumulated depreciation, $10,000; wagespayable, $1,500; taxes payable, $2,500; and equipment loan, $18,000.Construct a balance sheet for George. Do you think he has a problem withhis current balance sheet? If so, what is it?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...
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George’s Pizzeria has the following information as of December 31, 2012:
cash, $2,000; pizza ovens, $25,000; furniture, $12,500; accounts payable,
$3,500; notes payable, $12,500; accumulated
payable, $1,500; taxes payable, $2,500; and equipment loan, $18,000.
Construct a balance sheet for George. Do you think he has a problem with
his current balance sheet? If so, what is it?
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