Finnish Motors has the following balance sheet accounts: Land $150,000
Equipment 90,000
Salaries Payable 12,000
Notes Payable 99,000
Supplies 10,000
Cash 25,000
Common Stock 40,000
Retained Earnings 100,000
Accounts Payable ?
Prepaid Rent ?
If the company has total liabilities and stockholders' equity of $290,000,what is the balance of the company's Prepaid Rent account?

Question

Quizplus · Accepted Answer

To find the balance of the Prepaid Rent account, calculate total assets and subtract known assets from total assets. Total assets = Total liabilities and stockholders' equity = $290,000. Known assets: Land ($150,000) + Equipment ($90,000) + Supplies ($10,000) + Cash ($25,000) = $275,000. Prepaid Rent = Total assets - Known assets = $290,000 - $275,000 = $15,000.

Finnish Motors Has the Following Balance Sheet Accounts: Land $150,000