Here is the partial work sheet for Eckland Stereo. Eckland Stereo Work Sheet For Year Ended December 31, 20-- 1 Balance Sheet Balance Sheet 2 Account Name Debit Credit 3 Cash 14,815.00 4 Notes Receivable 7,500.00 5 Accounts Receivable 30,170.00 6 Merchandise Inventory 50,244.00 7 Prepaid Property Taxes 2,115.00 8 Prepaid Insurance 1,640.00 9 Land 16,700.00 10 Building 50,000.00 11 Accumulated Depreciation, Building 15,900.00 12 Computer Equipment 6,892.00 13 Accumulated Depreciation, Computer Equipment 5,674.00 14 Store Equipment 7,230.00 15 Accumulated Depreciation, Store Equipment 4,424.00 16 Delivery Equipment 4,300.00 17 Accumulated Depreciation, Delivery Equipment 3,470.00 18 Notes Payable 5,215.00 19 Accounts Payable 27,140.00 20 Mortgage Payable (current portion) 2,800.00 21 Mortgage Payable 65,200.00 22 M. J. Eckland, Capital 57,314.00 23 M. J. Eckland, Drawing 23,000.00 24 25 Wages Payable 1,984.00 26 214,606.00 189,121.00 27 Net Income 25,485.00 28 Total $214,606.00 $214,606.00 Required: 1. Prepare a statement of owner’s equity (no additional investment). 2. Prepare a balance sheet. 3. Determine the amount of the working capital.

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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Here is the partial work sheet for Eckland Stereo.

Eckland Stereo

Work Sheet

For Year Ended December 31, 20--

1		Balance Sheet	Balance Sheet
2	Account Name	Debit	Credit
3	Cash	14,815.00
4	Notes Receivable	7,500.00
5	Accounts Receivable	30,170.00
6	Merchandise Inventory	50,244.00
7	Prepaid Property Taxes	2,115.00
8	Prepaid Insurance	1,640.00
9	Land	16,700.00
10	Building	50,000.00
11	Accumulated Depreciation, Building		15,900.00
12	Computer Equipment	6,892.00
13	Accumulated Depreciation, Computer Equipment		5,674.00
14	Store Equipment	7,230.00
15	Accumulated Depreciation, Store Equipment		4,424.00
16	Delivery Equipment	4,300.00
17	Accumulated Depreciation, Delivery Equipment		3,470.00
18	Notes Payable		5,215.00
19	Accounts Payable		27,140.00
20	Mortgage Payable (current portion)		2,800.00
21	Mortgage Payable		65,200.00
22	M. J. Eckland, Capital		57,314.00
23	M. J. Eckland, Drawing	23,000.00
24
25	Wages Payable		1,984.00
26		214,606.00	189,121.00
27	Net Income		25,485.00
28	Total	$214,606.00	$214,606.00

	Required:
1.	Prepare a statement of owner’s equity (no additional investment).
2.	Prepare a balance sheet.
3.	Determine the amount of the working capital.
4.	Determine the current ratio.

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