Finnish Motors has the following balance sheet accounts:

Land $ 150,000

Equipment 90,000

Salaries Payable 12,000

Notes Payable 99,000

Supplies 10,000

Cash 25,000

Common Stock 40,000

Retained Earnings 100,000

Accounts Payable?

Prepaid Rent?

If the company has total assets of $290,000, what is the balance of the company's Accounts Payable account?

Accounts Payable 15,000

Prepaid Rent 39,000

Explanation:

Assets:

Cash 25,000

Supplies 10,000

Prepaid Rent X?

Equipment 90,000

Land 150,000

Total Assets = 290,000

We subtract from the total assets the know values to get the unknow which is, prepaid rent:

290,000 - 150,000 - 90,000 - 10,000 - 25,000 = 15,000 prepaid rent

Then laiblities + equity = total assets

so we use the same idea;

Liabilities

Accounts Payable X?

Salaries Payable 12,000

Notes Payable 99,000

Total liabilities Y?

Equity

Common Stock 40,000

Retained Earnings 100,000

Total equity 140,000

Total Liab + SE 290,000

290,000 - 140,000 = total liab = 150,0000

then AP

150,000 - 99000, - 12,000 = 39,000