Suppose a company has the following balance sheet accounts: $$\begin{array} { l r }
{ \text { Accounts } } & \text { Balances } \
\hline \text { Land } & \$ 9,000 \
\text { Building } & ? \
\text { Salaries payable } & 3,700 \
\text { Common stock } & ? \
\text { Accounts payable } & 2,600 \
\text { Cash } & 5,300 \
\text { Retained earnings } & 11,600 \
\text { Supplies } & 3,200 \
\text { Equipment } & 4,500
\end{array}$$ Calculate the missing amounts assuming the company has total assets of $40,000.

Question

Suppose a company has the following balance sheet accounts: $$\begin{array} { l r } 
 { \text { Accounts } } & \text { Balances } \
\hline \text { Land } & \$ 9,000 \
\text { Building } & ? \
\text { Salaries payable } & 3,700 \
\text { Common stock } & ? \
\text { Accounts payable } & 2,600 \
\text { Cash } & 5,300 \
\text { Retained earnings } & 11,600 \
\text { Supplies } & 3,200 \
\text { Equipment } & 4,500
\end{array}$$ Calculate the missing amounts assuming the company has total assets of $40,000.

Quizplus · Accepted Answer

$40,000 = Land ($9,000) + Building (?) + Cash ($5,300) + Supplies ($3,200) +Equipment ($4,500); therefore, Building = $18,000. $40,000 = Salaries Payable ($3,700) + Common Stock (?) + Accounts Payable ($2,600) +Retained Earnings ($11,600); therefore, Common Stock = $22,100

Suppose a Company Has the Following Balance Sheet Accounts Calculate the Missing Amounts Assuming the Company Has Total Assets