Question

Finnish Motors has the following balance sheet accounts:

Answer 1

Answer:

Accounts Payable   15,000

Prepaid Rent            39,000

Explanation:

Assets:

Cash                 25,000

Supplies            10,000

Prepaid Rent    X?

Equipment        90,000

Land                 150,000

Total Assets =  290,000

We subtract from the total assets the know values to get the unknow which is, prepaid rent:

290,000 - 150,000 - 90,000 - 10,000 - 25,000 = 15,000 prepaid rent

Then laiblities + equity = total assets

so we use the same idea;

Liabilities

Accounts Payable        X?

Salaries Payable    12,000

Notes Payable        99,000

Total liabilities             Y?

Equity

Common Stock       40,000

Retained Earnings 100,000

Total equity             140,000

Total Liab + SE       290,000

290,000 - 140,000 = total liab = 150,0000

then AP

150,000 - 99000, - 12,000 = 39,000