Exquisite Jewelers is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015: cash, $58,000; accounts receivable, $71,000; merchandise inventory. $154,000; prepaid insurance, $1,500; investment in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000; accumulated depreciation, store equipment, $19,000; accounts payable, $52,500; long-term note payable, 542,000; income taxes pay able, $9,000; retained earnings, S164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share).
Required: 1. Based on these data, prepare a December 31, 2015, balance sheet Use the following major captions (list the individual items under these captions):
a. Assets: Current Assets, Long-Term investments, Fixed Assets, and Other Assets. b. Liabilities: Current Liabilities and Long-Term Liabilities.
c. Stockholders’ Equity: Contributed Capital and Retained Earnings.
2. What is the net book value of the store equipment? Explain what this value means.

  • CreatedJuly 01, 2014
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