Assets Current assets Cash $ 6,850 Supplies 1,200 Prepaid insurance 1,000 Total current assets $ 9,050 Equipment 48,000 Less: Accumulated depreciation 9,000 39,000 Intangible assets—trademarks 950 Total assets $49,000 Liabilities and Equity Stockholders’ Current liabilities Accounts payable $10,000 Salaries and wages payable 500 Unearned service revenue 2,000 Total current liabilities $12,500 Long-term liabilities Bonds payable 9,000 Total liabilities 21,500 equity Stockholders’ Common stock 10,000 Retained earnings ($20,000 $2,500*) 17,500 – Total equity 27,500 stockholders’ Total liabilities and equity $49,000 stockholders’ *[$10,000 ($9,000 + $1,400 + $1,200 + $900)] –
Assets Current assets Cash $ 6,850 Supplies 1,200 Prepaid insurance 1,000 Total current assets $ 9,050 Equipment 48,000 Less: Accumulated depreciation 9,000 39,000 Intangible assets—trademarks 950 Total assets $49,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $10,000 Salaries and wages payable 500 Unearned service revenue 2,000 Total current liabilities $12,500 Long-term liabilities Bonds payable 9,000 Total liabilities 21,500 Stockholders’ equity Common stock 10,000 Retained earnings ($20,000 – $2,500*) 17,500 Total stockholders’ equity 27,500 Total liabilities and stockholders’ equity $49,000 *[$10,000 – ($9,000 + $1,400 + $1,200 + $900)]
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