Sheffield Corp. had the following accounts and balances: Accounts payable $28300 Equipment $34800 Accounts receivable 4550 Land 34700 Buildings? Unearned service revenue 9700 Cash 14750 Total stockholders' equity? If total stockholder's equity is $95000, what is the balance of the Buildings account?

Question

Taliyah Wolf

Business

17 September, 10:46

Sheffield Corp. had the following accounts and balances: Accounts payable $28300 Equipment $34800 Accounts receivable 4550 Land 34700 Buildings? Unearned service revenue 9700 Cash 14750 Total stockholders' equity? If total stockholder's equity is $95000, what is the balance of the Buildings account?

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Answers (1)

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Bronson Glenn · Answer 1

The balance on the building account is $44,200

Explanation:

The total value of the right hand side must equal the left hand side of a balance sheet. This means the total asset must equal liability plus shareholder equity.

Total Asset $

Equipment 34,800

Accounts receivable 4,550

Land 34,700

Buildings?

Cash 14,750

88,800

Total Liability and Equity $

Accounts payable 28,300

Unearned service revenue 9,700

Stockholder's equity 95,000

Total Liability and Equity 133,000

Buildings = Total Liability and Equity - Total Asset

= $133,000 - $88,800 = $44,200

The balance on the building account is $44,200