My Professor asked us to Balance Assets = Liability + Stockholder Equity Based on the following data
Question:
My Professor asked us to Balance Assets = Liability + Stockholder Equity Based on the following data
Thompson Company has the following ledger accounts and adjusted balances as of December 31, 2023. All accounts have normal balances. Thompsons income tax rate is 20%. Thompson has 300,000 shares of $10 par Common Stock authorized.
Accounts Payable. 78,000
Accounts Receivable 340,000
Accumulated Depreciation-Building 150,000
Accumulated Depreciation-Equipment. 120,000
Administrative Expenses. 120,000
Allowance for Doubtful Accounts 60,000
Bonds Payable.. 500,000
Building..1,500,000
Cash. 278,000
Common Stock 800,000
Cost of Goods Sold.1,140,000
Dividends 40,000
Equipment 580,000
Income from Operations of Division X.. 120,000 (Division X is a component of Thompson Company)
Interest Revenue.. 80,000
Inventory...840,000
Land (held for future use).... 600,000
Land (used for building).. 330,000
Loss from Sale of Division X...........................240,000 (Division X is a component of Thompson Company)
Loss on Sale of Investments... .. 30,000
Mortgage Payable ... 750,000*
Paid-In Capital in Excess of Par...448,000
Premium on Bonds Payable.. 20,000
Prepaid Insurance. 30,000**
Retained Earnings, January 1, 2019 750,000
Sales Discounts. 60,000
Sales Returns and Allowances.100,000
Sales Revenue...3,070,000
Selling Expenses. 390,000
Trademark 90,000
*$50,000 of the principal comes due in 2024. **Two years insurance paid in advance.