Q. 14SE - Horngren'S Financial And Managerial Accounting

Question

Centerpiece Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for the company. The following data have been assembled for the business: Insurance Expense \( 4,500 Salaries Expense \) 46,000 Service Revenue 70,000 Accounts Payable 17,600 Utilities Expense 1,400 Office Supplies 1,700 Rent Expense 16,000 Dividends 4,800 Common Stock 9,000 Accounts Receivable 8,000 Cash 7,200 Equipment 12,100 Retained Earnings, January 1, 2018 5,100  

Preparing the balance sheet 

Prepare the balance sheet of Centerpiece Arrangements as of December 31, 2018.

Step-by-Step Solution

Answer

Centerpiece Arrangements
Balance Sheet
December 31, 2018
Assets		Liabilities
Cash	$7,200	Accounts Payable	$17,600
Office Supplies	1,700
Accounts Receivable	8,000	Stockholders’ Equity
Equipment	12,100	Common Stock	9,000
		Retained Earnings	2,400
		Total Stockholders’ Equity	11,400
Total Assets	$29,000	Total Liabilities and Stockholders’ Equity	$29,000

Step1: Explanation on Balance Sheet

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

Step2: Details of balance sheet

In the balance sheet, total assets equals $29,000, total liabilities equals $17,600, and total stockholders’ equity equals $11,400.