The following are account balances (alphabetical order) on December 31, 2015 for Intensive Care...

Question:

The following are account balances (alphabetical order) on December 31, 2015 for Intensive Care Urology Practice (ICUP), (in alphabetical order):

Accounts Payable $ 22,000x
Accounts Receivable, Net $ 30,000x
Cash $ 12,000x
Equity (January 1, 2015) $ 88,000
Expenses (includes taxes) $ 41,000
Inventory $ 45,000x
Long-term Debt $ 52,000x
Long-term Investments $ 15,000x
Net Property & Equipment $ 67,000x
Revenues $ 48,000

Create I.C. Optometry's Balance Sheet (Hint: Not all of the accounts above are balance sheet accounts - you may need to calculate I.C.'s income (review Net Assets).).

Balance Sheet:

A balance sheet is a company financial statement which shows the total amount of assets owned by the firm. On the other hand, the balance sheet also shows the structure on was the firm's asset was financed as represented by its liabilities and equity.

Answer and Explanation:

The table below shows the balance sheet of the company.

Cash $ 12,000x
Accounts Receivable, Net $ 30,000x
Inventory $ 45,000x
Long-term Investments $ 15,000x
Net Property & Equipment $ 67,000x
Total Assets $169,000
Accounts Payable $ 22,000x
Long-term Debt $ 52,000x
Total Liabilities $74,000x
Equity (January 1, 2015) $ 88,000
Retained Earnings $7,000
Total Equity $95,000
Total Liabilities and Equity $169,000

The retained earnings is calculated by Revenue - Expenses which equals to $7,000


Learn more about this topic:

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Comparative Statements as Balance Sheet Disclosures

from Accounting 201: Intermediate Accounting I

Chapter 4 / Lesson 9
820

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