mahomes company reported the following data at the end of its first year of operations on december 31. cash…
mahomes company reported the following data at the end of its first year of operations on december 31. cash $ 6,000 accounts receivable 7,000 equipment 9,000 land 34,000 accounts payable 3,000 common stock 15,000 dividends 22,000 net income 60,000 complete this question by entering your answers in the tabs below. required a required b prepare its year - end balance sheet, using retained earnings calculated in part a. mahomes company balance sheet december 31
Answer
Explanation:
Step1: Calculate retained earnings
Retained earnings = Net income - Dividends. So, retained earnings = $60,000 - 22,000=$38,000$.
Step2: Calculate total assets
Total assets = Cash + Accounts receivable+ Equipment + Land. So, total assets = $6,000 + 7,000+9,000 + 34,000=$56,000$.
Step3: Calculate total liabilities and stock - holders' equity
Total liabilities = Accounts payable = $3,000$. Stock - holders' equity = Common stock+ Retained earnings = $15,000 + 38,000=$53,000$. Total liabilities and stock - holders' equity = $3,000+53,000=$56,000$.
| Assets | Amount ($) | Liabilities and Stock - Holders' Equity | Amount ($) |
|---|---|---|---|
| Cash | 6,000 | Accounts Payable | 3,000 |
| Accounts Receivable | 7,000 | Common Stock | 15,000 |
| Equipment | 9,000 | Retained Earnings | 38,000 |
| Land | 34,000 | ||
| Total Assets | 56,000 | Total Liabilities and Stock - Holders' Equity | 56,000 |
Answer:
| Assets | Amount ($) | Liabilities and Stock - Holders' Equity | Amount ($) |
|---|---|---|---|
| Cash | 6,000 | Accounts Payable | 3,000 |
| Accounts Receivable | 7,000 | Common Stock | 15,000 |
| Equipment | 9,000 | Retained Earnings | 38,000 |
| Land | 34,000 | ||
| Total Assets | 56,000 | Total Liabilities and Stock - Holders' Equity | 56,000 |