Answer:
Complete balance sheet is given below. (Req A and B)
Asset ($)
Non-Current Asset
Investment in stock $36,000
Store equipment $67,000
Accumulated depreciation ($19,000)
Current Asset
Cash $58,000
Accounts Receivable $71,000
Merchandise inventory $154,000
Equipment held for disposal $9,000
Prepaid insurance $1,500
Total Asset $377,500
Liabilities
Non-Current Liabilities
Long-term note payable $42,000
Current Liabilities
Accounts payable $52,500
Income taxes payable $9,000
Total Liabilities $103,500
Equity
Common stock $100,000
Stock premium $10,000
Retained earnings $164,000
Total Equity $274,000
Grand total $377,500
Net book value of equipments is given below.
Store equipment $67,000
Accumulated depreciation ($19,000)
Net book Value $48,000
Net book value is the amount at which asset subject to depreciation is accounted into balance sheet. It is the value that shows future benifits that is to be derived from the asset.
