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.



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  • CreatedJuly 01, 2014
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