Question

Suppose a local company has the following balance sheet accounts. Calculate the missing amounts assuming the business has total assets of $37,500.land- 9,000equiptment- ?salaries payable- 4,300notes payable- ?supplies- 2,100cash- 7,200SE- 13,500accounts payable- 1,700prepaid rent- 3,200

Answer 1

Answer:

Equipment = $16,000

Notes payable = $18,000

Explanation:

Total assets = Land + Equipment + Supplies + cash + prepaid rent

Equipment = Total assets - Land - Supplies - cash - prepaid rent

                  = $37,500 - $9,000 - $2,100 - $7,200 - $3,200

                  = $16,000

Total assets = Total liabilities = Shareholder's equity + salaries payable + notes payable + accounts payable

$37,500 = $13,500 + $4,300 + notes payable + $1,700

Notes payable = $37,500 - $13,500 - $4,300 - $1,700

                         = $18,000

Therefore, the value of equipment is $16,000 and the value of notes payable is $18,000.