Answer:
Barth Company
Balance Sheet
As of December 31,
ASSETS
Current Assets:
Cash, $2,200
Accounts Receivable, 4,600 $6,800
Equipment, 2,250
Land, 12,500 $14,750
Total assets $21,550
LIABILITIES + EQUITY:
Accounts Payable, $1,875
Equity $19,675
Total liabilities + Equity $21,550
Explanation:
a) Data and Calculations:
Cash, $2,200
Accounts Receivable, 4,600
Equipment, 2,250
Land, 12,500
Total assets $21,550
Accounts Payable, $1,875
Equity 19,675
Total liabilities + Equity $21,550
b) Total Equity ($19,675) is the difference between the total Assets ($21,550) and the total Liabilities ($1,875). The equity figure includes the contributed equity capital and the retained earnings.
