Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 18,500 Accounts payable 1,500 Salaries expense 25,500 Common stock 10,000 Land 10,500 Notes payable 12,500 Service revenue 31,500 Cash 4,500 Retained earnings? Required: Use only the appropriate accounts to prepare a balance sheet.

Question

Kiersten Cooke

Business

17 January, 09:06

Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 18,500 Accounts payable 1,500 Salaries expense 25,500 Common stock 10,000 Land 10,500 Notes payable 12,500 Service revenue 31,500 Cash 4,500 Retained earnings? Required: Use only the appropriate accounts to prepare a balance sheet.

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Mylee Davila · Answer 1

Wolfpack Construction

Balance sheet for the year ended

Amount in $ Amount in $

Assets

Current assets

Cash 4,500

Non current assets

Equipment 18,500

Land 10,500

Total Assets 33,500

Liabilities

Current liabilities

Accounts payable 1,500

Non-current liabilities

Notes payable 12,500

Total liabilities 14,000

Equity

Common stock 10,000

Retained earnings 9,500

Total Equity 19,500

Total Liabilities and Equity 33,500

Explanation:

The balance sheet shows the assets, liabilities and equity of a business. It defines the accounting equation. Assets include cash, equipment, receivables. Liabilities include notes payable, loans, accrued expense etc.

Assets = Liabilities + Equity

Equity is made up of common stock and retained earnings

Retained earnings?

Equity = $33,500 - $14,000

= $19,500

Retained earnings = $19,500 - $10,000

= $9,500