RED TOY COMPANY Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 21,000 $ 17,000 Accounts Receivable 53,000 42,000 Merchandise Inventory 76,000 88,000 Prepaid Expenses 3,100 2,100 Long-term Assets: 221,000 185,000 Plants Assets, Net 000,רר 91,000 Investments Total Assets $ 451,100 $ 425,100 Liabilities Current Liabilities: Accounts Payable $ 42,000 $ 38,000 Salaries Payable 25,000 20,000 Accrued Liabilities 7,000 16,000 Long-term Liabilities: Notes Payable 61,000 69,000 Total Liabilities 135,000 143,000 Stockholders' Equity Common Stock, no par 45,000 40,000 Retained Earnings 271,100 242,100 Total Stockholders' Equity 316,100 282,100 Total Liabilities and Stockholders' Equity $ 451,100 $ 425,100
RED TOY COMPANY Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 21,000 $ 17,000 Accounts Receivable 53,000 42,000 Merchandise Inventory 76,000 88,000 Prepaid Expenses 3,100 2,100 Long-term Assets: 221,000 185,000 Plants Assets, Net 000,רר 91,000 Investments Total Assets $ 451,100 $ 425,100 Liabilities Current Liabilities: Accounts Payable $ 42,000 $ 38,000 Salaries Payable 25,000 20,000 Accrued Liabilities 7,000 16,000 Long-term Liabilities: Notes Payable 61,000 69,000 Total Liabilities 135,000 143,000 Stockholders' Equity Common Stock, no par 45,000 40,000 Retained Earnings 271,100 242,100 Total Stockholders' Equity 316,100 282,100 Total Liabilities and Stockholders' Equity $ 451,100 $ 425,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Preparing the direct method statement of
Red Toy Company reported the following comparative balance sheet:
Requirements
- Compute the collections from customers during 2018 for Red Toy Company. Sales Revenue totaled $134,000.
- Compute the payments for inventory during 2018. Cost of Goods Sold was $79,000.
![RED TOY COMPANY
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Current Assets:
Cash
$ 21,000
$ 17,000
Accounts Receivable
53,000
42,000
Merchandise Inventory
76,000
88,000
Prepaid Expenses
3,100
2,100
Long-term Assets:
221,000
185,000
Plants Assets, Net
000,רר
91,000
Investments
Total Assets
$ 451,100
$ 425,100
Liabilities
Current Liabilities:
Accounts Payable
$ 42,000
$ 38,000
Salaries Payable
25,000
20,000
Accrued Liabilities
7,000
16,000
Long-term Liabilities:
Notes Payable
61,000
69,000
Total Liabilities
135,000
143,000
Stockholders' Equity
Common Stock, no par
45,000
40,000
Retained Earnings
271,100
242,100
Total Stockholders' Equity
316,100
282,100
Total Liabilities and Stockholders' Equity
$ 451,100
$ 425,100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff90ff6dc-7620-4c93-8d48-784c6819ef76%2F47b30268-21f0-4bfe-927b-42ba3f056dc3%2F60znabi.png&w=3840&q=75)
Transcribed Image Text:RED TOY COMPANY
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Current Assets:
Cash
$ 21,000
$ 17,000
Accounts Receivable
53,000
42,000
Merchandise Inventory
76,000
88,000
Prepaid Expenses
3,100
2,100
Long-term Assets:
221,000
185,000
Plants Assets, Net
000,רר
91,000
Investments
Total Assets
$ 451,100
$ 425,100
Liabilities
Current Liabilities:
Accounts Payable
$ 42,000
$ 38,000
Salaries Payable
25,000
20,000
Accrued Liabilities
7,000
16,000
Long-term Liabilities:
Notes Payable
61,000
69,000
Total Liabilities
135,000
143,000
Stockholders' Equity
Common Stock, no par
45,000
40,000
Retained Earnings
271,100
242,100
Total Stockholders' Equity
316,100
282,100
Total Liabilities and Stockholders' Equity
$ 451,100
$ 425,100
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education