Question

Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash = $250,000; Patents and copyrights = $720,000; Accounts payable = $530,000; Accounts receivable = $129,000; Tangible net fixed assets = $3,400,000; Inventory = $345,000; Notes payable = $190,000; Accumulated retained earnings = $1,255,000; Long-term debt = $1,830,000. What is the common stock account balance for the company?

Answer 1

Answer:

Common stock balance= $1,039,000

Explanation:

A balance sheet can be described as a financial statement that presents the assets, liabilities and shareholders' equity of a company.

Common stock refers to the security such shares that represents ownership in a company.

In order to determine the common stock account balance for Rogers Corp., its balance sheet is first prepared as follows:

Rogers Corp.

Balance Sheet

For the year 2018

Particulars                                              $                         $            

Intangible Assets:

Patents and copyrights                                                720,000

Tangible Assets:

Net fixed assets                                                         3,400,000

Current Assets:

Cash                                                   250,000

Accounts receivable                          129,000

Inventory                                            345,000  

Total Current Assets                         724,000

Current Liabilities:

Accounts payable                            (530,000)

Notes payable                                  (190,000)  

Working Capital                                                                4,000

Long-term Liabilities:

Long-term debt                                                          (1,830,000)

Net Total Assets                                                         2,294,000  

Financed by:

Common stock (w.1)                                                   1,039,000

Accumulated retained earnings                                1,255,000   

Owners' Equity                                                         2,294,000  

Workings:

w.1: Common stock balance = Net total assets - Accumulated retained earnings = $2,294,000 - $1,255,000 = $1,039,000