The following general equation can be used to determine missing information about balance sheet accounts: Use the

Question:

The following general equation can be used to determine missing information about balance sheet accounts:

Use the equation to determine the missing information in each of the following independent situations. For each case assume that the year-end is December 31. You can also use an accounting equation spreadsheet to determine the missing information.
a. On December 31, 2017 Foxboro Ltd. (Foxboro) owed its employees $44,000. During
2017, Foxboroâ€™s employees earned $400,000 and were paid $420,000. How much did
Foxboro owe its employees on December 31, 2016?
b. Canora Inc. (Canora) had $1,000,000 and $900,000 of accounts receivable and on January 1 and December 31, 2017 respectively. During 2017, Canora collected $4,900,000 from customers. What amount of credit sales did Canora make during 2017?
c. Sheth Inc. (Sheth) purchases all of its inventory on credit. On January 1, 2016, Sheth had $2,500,000 of inventory on hand and on December 31, 2016 it had $3,000,000 of inventory. Cost of goods sold during 2016 was $10,700,000. The balances in Shethâ€™s accounts payable account on January 1, 2016 and December 31, 2016 were $1,900,000 and $2,200,000 respectively. How much did Sheth pay its suppliers during 2016?
d. On January 1, 2016, Cleaveley Ltd. (Cleaveley) had $350,000 of inventory on hand.
During 2016, Cleaveley sold $1,040,000 of inventory and purchased $1,230,000 of inventory. How much inventory did Cleaveley have on December 31, 2016?
e. Dokis Inc. (Dokis) capitalizes certain development costs and amortizes them over five years. On January 1, 2016, the balance in Dokisâ€™s development cost account on the balance sheet was $150,000 and on December 31, 2016 the balance was $170,000. During 2016, the amortization expense for development costs was $40,000. What amount of development costs did Dokis capitalize during 2016? Assume that Dokis doesnâ€™t have a separate contra-asset account for accumulating amortization for thisaccount.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...