Assets Current Assets 5 15,000.00 Cash 4.500.00 Accounts Receivable Inventory ? Prepaid Expenses 7.750.00 $ 35,500.00 Total Current Assets Fixed Assets S 119,000.00 Land 87,500.00 Equipment 15,000.00) B Less Accumulated Depreciation - Equipment Total Fixed Assets Total Assets ? Liabilities & Equity Current Liabilities $ 17,000.00 Accounts Payable 6,500.00 Accrued abilities Deferred Income Total Current Liabilities 1.500.00 D E Long Term Liabilities Notes Payable Total Long Term Liabilities Totol Liabilities F G Equity Paid-in Capital Retained Earnings 150,000.00 H $ 195,000.00 Total Equity Total Liabilities & Equity 1

Solution:

Total of current assets is given so value of A can be found by using the following eqution-

Total Current Assets = Cash + Accounts Receivable + Inventory + Prepaid Expenses

35,500 = 15,000 + 4500 + A + 7,750

35,500 = 27,250 + A

A = 35,500 - 27,250

A = 8,250 = Inventory

Total fixed assets are fixed assets minus depreciation, So

Total fixed assets = Land + Equipment - Accumulated depreciation on equipments

Total fixed Assets (B) = 119,000 + 87,500 - 5,000

B = 201,500 = Total Fixed Assets

Total assets are sum of total fixed assets and total current assets

Total Assets (C) = Total fixed Assets + total current Assets

C = 201,500 + 35,500

C = 237,000 = Total Assets

Total current liabilities are sum of all current liabilities

Total Current liabilities (D) = Accounts Payable + Accrued Liabilities + Deferred Income

D = 17,000 + 6,500 + 1,500

D = 25,000 = Total Current Liabilities

To calculate values of E, F and G we need values of H and I

Total Equity = paid-in-capital + Retained Earnings

195,000 = 150,000 + H

H = 195,000 - 150,000

H = 45,000 = Retained Earnings

Using the Accounting Equation : Total Assets = Total Liabilities + Total Equity

So, Total Liabilities + equity = 237,000

I = 237,000 = Total Liabilities + Equity

Again using the Accounting Equation

Total Liabilities = Total Assets - Equity

G = 237,000 - 195,000

G = 42,000 = Total Liabilities

Total Libilities = total current libilities + total long term liabilities

42,000 = 25,000 + F

F = 42,000 - 25,000

F = 17,000 = Total Long term liabilities

Total long term liabilities = Notes Payable

E = 17,000 = Notes payable