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    patty4's Avatar
    patty4 Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 21, 2009, 12:17 PM
    How do I calculate the long-term debts in a balance sheet?
    The given information is:

    Accumulated Depreciation $38,000
    Long-term debt? (how do I find this)
    Inventory 5,000
    General and administrative expenses 1,000
    Interest Expense 1, 200
    Common Stock 50,000
    Cost of Goods Sold 6,000
    Short-term notes 750
    Depreciation Expense 600
    Sales 13,000
    Accounts Receivable 10,000
    Accounts Payable 5,000
    Buildings and Equipment 120,000
    Cash 11,000
    Taxes 1,300
    Retained Earnings 10, 250

    It also asked to prepare an income statement as well. Is there anyone that can help me.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 21, 2009, 04:42 PM

    Assuming there are no other accounts besides those listed, you need to list them out by debit and credit columns, then add them, and the difference will be the long term debts. That is, it's the missing number you'd need to make it balance.

    You can also do it by completing that income statement, updating retained earnings and making a balance sheet, and again the long-term debt would be the missing number to make it balance. But probably more chance of error that way.

    As for an income statement, it only contains revenues and expenses. I would presume there's an example in your textbook but just in case, there's an example here:
    Multiple-Step Income Statement | AccountingCoach.com

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