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Chapter 1: Q 36E (page 42)

Prepare the balance sheet for Damon Design Studio as of December 31, 2018

Short Answer

Expert verified

Wilson Towing Service

Balance Sheet

December 31, 2018

Assets

Liabilities

Cash

$3,200

Accounts Payable

$3,600

Office Supplies

5,100

Notes Payable

14,000

Accounts Receivable

9,300

Total Liabilities

17,600

Office Furniture

48,400

Stockholders’ Equity

Common Stock

13,000

Retained Earnings

35,400

Total Stockholders’ Equity

48,400

Total Assets

$66,000

Total Liabilities and Stockholders’ Equity

$66,000

Step by step solution

01

Step-by-Step-SolutionStep 1: Explanation on Balance Sheet

Balance sheet represents the balances of assets, liabilities, and owners’ equity for the particular accounting period.

02

Details of balance sheet

In the balance sheet, total assets equals $66,000, total liabilities equals $17,600, and total stockholders’ equity equals $48,400.

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Most popular questions from this chapter

Using the accounting equation Thompson Handyman Services has total assets for the year of \(18,400 and total liabilities of \)9,050. Requirements 1. Use the accounting equation to solve for equity. 2. If next year assets increased by \(4,300 and equity decreased by \)3,850, what would be the amount of total liabilities for Thompson Handyman Services?

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