TangoCo is developing its annual financial statements for 2015. The following amounts were correct at December 31,

Question:

TangoCo is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015: cash. $48,800; investment in stock of PL Corporation (long-term), $36.400; store equipment. $67,200; accounts receivable, $71,820; inventory, $154,000; prepaid rent, $1,120; used store equipment held for disposal, $9.800; accumulated depreciation, store equipment, S 13,440; income taxes payable, 59,800; long-term note payable, $32.000; accounts payable, $58.800: retained earnings, $165,100; and common stock, 100,000 shares outstanding, par value $1 per share (originally sold and issued at SI .10 per share).

Required:1. Based on these data, prepare a 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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...