From the following data, prepare a classified balance sheet for Taylorsville Construction Company at December 31, 2009.

Accounts payable.. . $ 74,300
Accounts receivable.. . 113,500
Buildings.. . 512,000
Owners’ equity, 1/1/09.. . 314,300
Cash.. . 153,600
Distributions to owners during 2009.. . 48,100
Supplies.. . 4,250
Land.. . 90,000
Mortgage payable.. . 423,400
Net income for 2009.. . 109,450
Owners’ equity, 12/31/09..

Thank you.

So what is your question. You need to prepare a classified Balance Sheet. If you do not know what a classified balance sheet looks like there should will be one in your accounting textbook. You just need to follow the format of a classified Balance Sheet in your textbook.

My question is what is the Owners' equity on 12/31/09?

Thank you.

Owners Equity = Total Assets - Total Liabilities.

Quote:

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Originally Posted by pready

Owners Equity = Total Assets - Total Liabilities.

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So do I have this correct?

Taylorsville Construction
Balance Sheet
As of December 31, 2009

Assets:
Cash $153,600
Land $90,000
Net Income $109,450
Accounts Receivable $113,500
Buildings $512,000

Total Assets $978,550

Liabilities:
Accounts Payable $74,300
Mortgage Payable $423,400
Supplies $4,250

Total Liabilities $501,950

Owners’ Equity:

Total Owners’ Equity $314,300

Total Liabilities and Owners’ Equity $816,250

Owners’ Equity = Assets – Liabilities $476,660

Thank you!

You almost have it correct. Net Income is not a balance sheet account. It is an income statement account and flows through to Retained Earnings.

Supplies is not a liability. It is a current asset.

Quote:

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Originally Posted by pready

You almost have it correct. Net Income is not a balance sheet account. It is an income statement account and flows thru to Retained Earnings.

Supplies is not a liability. It is a current asset.

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Awesome thank you!

So now I have

Taylorsville Construction
Balance Sheet
As of December 31, 2009

Assets:
Cash $153,600
Land $90,000
Net Income $109,450
Accounts Receivable $113,500
Buildings $512,000

Total Assets $978,550

Liabilities:
Accounts Payable $74,300
Mortgage Payable $423,400

Total Liabilities $501,950

Owners’ Equity:

Total Owners’ Equity $314,300

Total Liabilities and Owners’ Equity $812,000

Owners’ Equity = Assets – Liabilities $310,050

Your Assets are: Cash, Accounts Receivable, Supplies, Land, and Buildings.

Your Liabilities are: Accounts Payable and Mortgage Payable

To get your Owners Equity amount you need to follow 3 steps.

Step 1. Simply add the amounts of your Assets to get the total amount of assets.

Step 2. Simply add the amounts of your Liabilities to get the total liabilities

Step 3. Simply subtract your total liabilities from your total assets to get your total Owners Equity.

Remember Assets + Liabilities = Owners Equity, therefore Owners Equity = Assets - Liabilities

Quote:

---

Originally Posted by pready

Your Assets are: Cash, Accounts Receivable, Supplies, Land, and Buildings.

Your Liabilities are: Accounts Payable and Mortgage Payable

To get your Owners Equity amount you need to follow 3 steps.

Step 1. Simply add the amounts of your Assets to get the total amount of assets.

Step 2. Simply add the amounts of your Liabilities to get the the total liabilities

Step 3. Simply subtract your total liabilities from your total assets to get your total Owners Equity.

Remember Assets + Liabilities = Owners Equity, therefore Owners Equity = Assets - Liabilities

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Ok, thank you for your suggestions and I have followed your steps to a T! Much thanks and appreciation:)