Chapter 1, Problem 44E

To determine

Concept Introduction:

Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.

Balance Sheet: The Balance sheet is a summary of Assets, Liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classifies into Current Assets, Long Term Investments, Plant Assets and Intangible assets. And Liabilities are further classified into Current Liabilities and Long term liabilities.

To Calculate:

The missing amounts on balance sheets given.

Answer to Problem 44E

The missing amounts on balance sheets given are as follows:

Current Assets	(a)	$ 26,900		$ 25,000
Intangible assets		$ 10,400		$ 9,200
Long Terms Investments		$ 19,200	(f)	$ 22,200
Property, Plant, and Equipment, Net		$ 85,700		$ 92,800
Total Assets		$ 142,200	(g)	$ 149,200
Current Liabilities		$ 14,500		$ 12,300
Long Terms Liabilities	(b)	$ 35,800		$ 34,900
Total Liabilities		$ 50,300	(h)	$ 47,200
Contributed Capital	(c)	$ 35,000	(i)	$ 35,000
Retained earnings		$ 56,900		$ 67,000
Total Stockholder's equity	(d)	$ 91,900	(j)	$ 102,000
Total Liabilities Stockholder's equity	(e)	$ 142,200		$ 149,200

Explanation of Solution

The missing amounts on balance sheets given are calculated as follows:

Current Assets	(a)	$ 26,900		$ 25,000
		(142200-10400-19200-85700)
Intangible assets		$ 10,400		$ 9,200
Long Terms Investments		$ 19,200	(f)	$ 22,200
				(149200-25000-9200-92800)
Property, Plant, and Equipment, Net		$ 85,700		$ 92,800
Total Assets		$ 142,200	(g)	$ 149,200
Current Liabilities		$ 14,500		$ 12,300
Long Terms Liabilities	(b)	$ 35,800		$ 34,900
		(50300-14500)
Total Liabilities		$ 50,300	(h)	$ 47,200
				(12300+34900)
Contributed Capital	(c)	$ 35,000	(i)	$ 35,000
		(91900-56900)		(102000-67000)
Retained earnings		$ 56,900		$ 67,000
Total Stockholder's equity	(d)	$ 91,900	(j)	$ 102,000
		(142200-50300)		(149200-47200)
Total Liabilities Stockholder's equity	(e)	$ 142,200		$ 149,200
		(= Total Assets)