Flores Realty Corporation had the following balance sheet accounts and balances: $\begin{array}{lrlr}
\text { Accounts Payable } & \$ 6,000 & \text { Common Stock } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equipment } & \$ 7,000 \
\text { Building } & ? & \text { Land } & 7,000 \
\text { Cash } & 3,000 & \text { Retained Earnings } & 2,000
\end{array}$
If the balance of the Common Stock account were $29,500,what would be the balance of the Building account?

Question

Flores Realty Corporation had the following balance sheet accounts and balances: $\begin{array}{lrlr}
\text { Accounts Payable } & \$ 6,000 & \text { Common Stock } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equipment } & \$ 7,000 \
\text { Building } & ? & \text { Land } & 7,000 \
\text { Cash } & 3,000 & \text { Retained Earnings } & 2,000
\end{array}$
 If the balance of the Common Stock account were $29,500,what would be the balance of the Building account?

Quizplus · Accepted Answer

The total assets must equal the total liabilities and equity. Total assets are $1,000 (Accounts Receivable) + $7,000 (Equipment) + $7,000 (Land) + $3,000 (Cash) + Building. Total liabilities and equity are $6,000 (Accounts Payable) + $29,500 (Common Stock) + $2,000 (Retained Earnings). Solving for the Building balance, we get $19,500.

Flores Realty Corporation Had the Following Balance Sheet Accounts and Balances