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Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store. Hawkins prepared the balance sheet shown below and submitted it to one of the bank's loan officers in support of her loan application. The Education Supply Center Balance Sheet December 31, 20X1 Assets Cash Accounts Receivable Inventory Equipment (cost) Personal Residence Supplies Family Auto Total Assets Liabilities and Owner's Equity Accounts Payable Note Payable on Family Car Mortgage on House Sadie Hawkins, Capital Total Liabilities and Owner's Equity $ 14,300 16,900 40,900 34,500 207,000 2,150 39,000 $354,750 $ 17,350 12,900 111,000 213,500 $354,750 The following additional information was made available by Hawkins: a. The inventory has an original cost of $32,800. It is listed on the balance sheet at the estimated selling price. b. The cash listed on the balance sheet includes $3,650 in Sadie Hawkins' personal account. The remainder of the cash is in the store's account. c. The store recently purchased a delivery truck for $38,500, financed through a bank loan. The bank has legal title to the truck. To date, the store has paid $10,900 on the loan. Of the remaining $27,600 liability, $10,500 is current and the remainder long-term. Hawkins did not include the truck or the liability on the balance sheet because neither she nor the business owns it. d. Depreciation allowable to date is $6,900 on the equipment and $4,900 on the truck.

Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store. Hawkins prepared the balance sheet shown below and submitted it to one of the bank's loan officers in support of her loan application. The Education Supply Center Balance Sheet December 31, 20X1 Assets Cash Accounts Receivable Inventory Equipment (cost) Personal Residence Supplies Family Auto Total Assets Liabilities and Owner's Equity Accounts Payable Note Payable on Family Car Mortgage on House Sadie Hawkins, Capital Total Liabilities and Owner's Equity $ 14,300 16,900 40,900 34,500 207,000 2,150 39,000 $354,750 $ 17,350 12,900 111,000 213,500 $354,750 The following additional information was made available by Hawkins: a. The inventory has an original cost of $32,800. It is listed on the balance sheet at the estimated selling price. b. The cash listed on the balance sheet includes $3,650 in Sadie Hawkins' personal account. The remainder of the cash is in the store's account. c. The store recently purchased a delivery truck for $38,500, financed through a bank loan. The bank has legal title to the truck. To date, the store has paid $10,900 on the loan. Of the remaining $27,600 liability, $10,500 is current and the remainder long-term. Hawkins did not include the truck or the liability on the balance sheet because neither she nor the business owns it. d. Depreciation allowable to date is $6,900 on the equipment and $4,900 on the truck.

FINANCIAL ACCOUNTING
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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Current assets Cash Accounts receivable Inventory Supplies Total current assets Plant and equipment Equipment Less: Accumulated depreciation Equipment Truck Less: Accumulated depreciation-Truck Total plant and equipment Total assets Current liabilities Liabilities and owner's equity Accounts payable Notes payable Truck Total current liabilities Assets Long-term liabilities Total liabilities Owner's equity THE EDUCATION SUPPLY CENTER Balance Sheet December 31, 20X1 Sadie Hawkins, Capital Total liabilities and owner's equity $ 34,500 6,900 38,500 4,900 $ 10,650 16,900 32,800 2,150 27,600 33,600 $ 17,350 $ 62,500 61,200 $ 123,700 17,350 17,350 $ 17,350
Transcribed Image Text:Current assets Cash Accounts receivable Inventory Supplies Total current assets Plant and equipment Equipment Less: Accumulated depreciation Equipment Truck Less: Accumulated depreciation-Truck Total plant and equipment Total assets Current liabilities Liabilities and owner's equity Accounts payable Notes payable Truck Total current liabilities Assets Long-term liabilities Total liabilities Owner's equity THE EDUCATION SUPPLY CENTER Balance Sheet December 31, 20X1 Sadie Hawkins, Capital Total liabilities and owner's equity $ 34,500 6,900 38,500 4,900 $ 10,650 16,900 32,800 2,150 27,600 33,600 $ 17,350 $ 62,500 61,200 $ 123,700 17,350 17,350 $ 17,350
Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store. Hawkins prepared the balance sheet shown below and submitted it to one of the bank's loan officers in support of her loan application. The Education Supply Center Balance Sheet December 31, 20X1 Assets Cash Accounts Receivable Inventory Equipment (cost) Personal Residence Supplies Family Auto Total Assets Liabilities and Owner's Equity Accounts Payable Note Payable on Family Car Mortgage on House Sadie Hawkins, Capital Total Liabilities and Owner's Equity $ 14,300 16,900 40,900 34,500 207,000 2,150 39,000 $354,750 $ 17,350 12,900 111,000 213,500 $354,750 The following additional information was made available by Hawkins: a. The inventory has an original cost of $32,800. It is listed on the balance sheet at the estimated selling price. b. The cash listed on the balance sheet includes $3,650 in Sadie Hawkins' personal account. The remainder of the cash is in the store's account. c. The store recently purchased a delivery truck for $38,500, financed through a bank loan. The bank has legal title to the truck. To date, the store has paid $10,900 on the loan. Of the remaining $27,600 liability, $10,500 is current and the remainder long-term. Hawkins did not include the truck or the liability on the balance sheet because neither she nor the business owns it. d. Depreciation allowable to date is $6,900 on the equipment and $4,900 on the truck.
Transcribed Image Text:Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store. Hawkins prepared the balance sheet shown below and submitted it to one of the bank's loan officers in support of her loan application. The Education Supply Center Balance Sheet December 31, 20X1 Assets Cash Accounts Receivable Inventory Equipment (cost) Personal Residence Supplies Family Auto Total Assets Liabilities and Owner's Equity Accounts Payable Note Payable on Family Car Mortgage on House Sadie Hawkins, Capital Total Liabilities and Owner's Equity $ 14,300 16,900 40,900 34,500 207,000 2,150 39,000 $354,750 $ 17,350 12,900 111,000 213,500 $354,750 The following additional information was made available by Hawkins: a. The inventory has an original cost of $32,800. It is listed on the balance sheet at the estimated selling price. b. The cash listed on the balance sheet includes $3,650 in Sadie Hawkins' personal account. The remainder of the cash is in the store's account. c. The store recently purchased a delivery truck for $38,500, financed through a bank loan. The bank has legal title to the truck. To date, the store has paid $10,900 on the loan. Of the remaining $27,600 liability, $10,500 is current and the remainder long-term. Hawkins did not include the truck or the liability on the balance sheet because neither she nor the business owns it. d. Depreciation allowable to date is $6,900 on the equipment and $4,900 on the truck.
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