Question

The following account balances were taken from the 2021 post-closing trial balance of the Bowler Corporation: cash, $9,500; accounts receivable, $19,500; inventory, $35,000; equipment, $210,000; accumulated depreciation, $78,000; accounts payable, $75,000; salaries payable, $31,000; retained earnings, $21,000; and common stock, $69,000.
Prepare a balance sheet

Answer 1

Answer:

$196,000

Explanation:

The question is to prepare the balance sheet of Bowler Corporation as at the end of 2021.

Balance Sheet is generally divided into Assets side (Non-Current and current) Liabilities (non-current and current) and the Stockholders equity. A good balance sheet should be as follows Asset= Liabilities + Equity

Bowler Corporation Balance Sheet as at 2021

Particulars                                            Amount($)                 Amount($)

Non-Current Assets

Equipment                                          210,000

Less: Depreciation                             (78,000)                    132,000

Current Assets

Cash                                                      9,500

Accounts receivable                            19,500

Inventory                                               35,000

Total Current Assets                                                             64,000

Total Assets                                                                          196,000

Liabilities and Equity

Current Liabilities

Accounts Payable                                 75,000

Salaries payable                                    31,000

Total liabilities                                                                         106,000

Equity                                                  

Common Stock                                      69,000

Retained earnings                                  21,000

Total stockholders' equity                                                         90,000

Total Liabilities and Equity                                                     196,000