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New Member
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Aug 15, 2007, 04:15 PM
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Classified Balance sheet
I am lost how to balance this sheet. I have it correct except the question mark at the end. Please help.
Balance Sheet Preparation From the following data, prepare a classified balance sheet for Simon Company at December
31, 2006.
Accounts Payable $62,500
Accounts Receivable 123,000
Buildings 418,500
Owner's Equity 1/1/06 210,000
Cash 179,750
Distributions to owners 2006 21,750
Supplies 3,750
Land 130,000
Mortgage payable 479,500
Net Income for 2006 124,750
Owner's Equity 12/31/06 ?
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Ultra Member
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Aug 15, 2007, 09:53 PM
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Assets = Liabilities + Owner's Equity
Owner's Equity for the Year is Calculated as: Beginning + Net Income – Any Distributions to owners = Closing Owner's Equity.
Based on those calculations, do you think you can take a stab at the answer?
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New Member
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Aug 16, 2007, 09:57 AM
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I do not know where I am stubbling but your answer was as follows:
Assets = Liabilities + Owner's Equity
Owner's Equity for the Year is Calculated as:
Beginning + Net Income - any Distrivution to owners = Closing Owner's Equity
Sorry still cannot get it.
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Ultra Member
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Aug 16, 2007, 04:04 PM
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The following are assets:
Accounts Receivable 123,000
Buildings 418,500
Cash 179,750
Supplies 3,750
Land 130,000
The following are liabilities:
Accounts Payable $62,500
Mortgage payable 479,500
The following should be used in calculating Owner's Equity:
Owner's Equity 1/1/06 210,000
LESS Distributions to owners 2006 21,750
PLUS Net Income for 2006 124,750
EQUALS Owner's Equity 12/31/06 ?
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New Member
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Aug 16, 2007, 04:21 PM
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Originally Posted by CaptainForest
The following are assets:
Accounts Receivable 123,000
Buildings 418,500
Cash 179,750
Supplies 3,750
Land 130,000
The following are liabilities:
Accounts Payable $62,500
Mortgage payable 479,500
The following should be used in calculating Owner’s Equity:
Owner's Equity 1/1/06 210,000
LESS Distributions to owners 2006 21,750
PLUS Net Income for 2006 124,750
EQUALS Owner's Equity 12/31/06 ?
Okay,
I used the formula and concluded at $313,000 (Owner's Equity 12/31/06)
o/e - distributions + net income = o/e 12/31/06
Thank you. The other a + L are pretty straightforward.
Thank you.
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Ultra Member
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Aug 17, 2007, 01:34 PM
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313,000 is the correct answer.
Good job!
And you're welcome.
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New Member
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Aug 17, 2007, 02:08 PM
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Got it finally less distribution to owners was missing out of the equation.
Thanks
Originally Posted by CaptainForest
The following are assets:
Accounts Receivable 123,000
Buildings 418,500
Cash 179,750
Supplies 3,750
Land 130,000
The following are liabilities:
Accounts Payable $62,500
Mortgage payable 479,500
The following should be used in calculating Owner’s Equity:
Owner's Equity 1/1/06 210,000
LESS Distributions to owners 2006 21,750
PLUS Net Income for 2006 124,750
EQUALS Owner's Equity 12/31/06 ?
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New Member
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Aug 20, 2007, 02:32 PM
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Comment on CaptainForest's post
Very informative
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