20 suppose a company has the following balance - sheet accounts, calculate the missing amounts assuming the…

20 suppose a company has the following balance - sheet accounts, calculate the missing amounts assuming the company has total assets of $41,000. land $ 8,800 salaries payable 3,700 accounts payable 2,200 cash 5,100 retained earnings 11,200 supplies 3,400 equipment 4,500

20 suppose a company has the following balance - sheet accounts, calculate the missing amounts assuming the company has total assets of $41,000. land $ 8,800 salaries payable 3,700 accounts payable 2,200 cash 5,100 retained earnings 11,200 supplies 3,400 equipment 4,500

Answer

Explanation:

Step1: Recall accounting equation

Total Assets = Total Liabilities + Share - holders' Equity. First, find total known assets and total known liabilities and equity components.

Step2: Calculate known assets

Sum of known assets: $8800 + 5100+3400 + 4500=21800$.

Step3: Calculate known liabilities and equity

Sum of known liabilities: $3700 + 2200=5900$. Sum of known equity: $11200$. Total known liabilities and equity: $5900 + 11200 = 17100$.

Step4: Calculate building value

Let the value of building be $x$. We know total assets are $41000$. So, $21800+x=41000$. Solving for $x$, we get $x = 41000 - 21800=19200$.

Step5: Calculate common - stock value

Using the accounting equation $41000=5900 + 11200+\text{Common Stock}$. Rearranging, $\text{Common Stock}=41000-(5900 + 11200)=23900$.

Answer:

Building: $19200$, Common Stock: $23900$