The balance sheet shows the following accounts and amounts:Cash $26,000; Short-term Debt $42,000; Buildings and Equipment $840,000; Inventory, $88,000; Notes Payable $120,000; Accumulated Depreciation $220,000; Common Stock $160,000; Accounts Receivable $76,000; Retained Earnings $474,000; Accounts Payable $34,000.Total assets on the balance sheet are:Multiple Choice$1,030,000.$734,000.$1,250,000.$810,000.
Question
The balance sheet shows the following accounts and amounts:Cash 42,000; Buildings and Equipment 88,000; Notes Payable 220,000; Common Stock 76,000; Retained Earnings 34,000.Total assets on the balance sheet are:Multiple Choice734,000.810,000.
Solution
To calculate the total assets on the balance sheet, you need to add up all the assets. Assets include Cash, Buildings and Equipment, Inventory, and Accounts Receivable.
Here's the step-by-step calculation:
- Cash: $26,000
- Buildings and Equipment: $840,000 (Note: Accumulated Depreciation is not included here as it is a contra asset, which reduces the value of Buildings and Equipment)
- Inventory: $88,000
- Accounts Receivable: $76,000
Add all these together:
840,000 (Buildings and Equipment) + 76,000 (Accounts Receivable) = $1,030,000
So, the total assets on the balance sheet are 1,030,000.
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