Question

Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash = $203,000; patents and copyrights = $857,000; accounts payable = $286,000; accounts receivable = $263,000; tangible net fixed assets = $5,200,000; inventory = $548,000; notes payable = $179,000; accumulated retained earnings = $4,686,000; long-term debt = $1,150,000. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Answer 1

The balance sheet is presented as shown below:

Liabilities and Shareholder's Equity	Amount	Assets	Amount
Shareholder's Equity*	$ 770,000	Cash	$ 203,000
Accumulated retained earnings	$ 4,686,000	Accounts receivable	$ 263,000
Account Payable	$ 286,000	Patent and copyrights	$ 857,000
Notes payable	$ 179,000	Inventory	$ 548,000
Long term debt	$ 1,150,000	Fixed Assets	$ 5,200,000
Total Liabilities and Shareholder's Equity	$ 7,071,000	Total Assets	$ 7,071,000

Shareholder's Equity is computed as follows:

= Total Assets - Accumulated retained earnings - Account Payable - Notes payable - Long term debt

= $ 7,071,000 - $ 4,686,000 - $ 286,000 - $ 179,000 - $ 1,150,000

= $ 770,000

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