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ACC - Problem 13-20A Supply missing balance sheet numbers (Lowell?s Country Music Bar)

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Question;Problem 13-20A Supply missing balance sheet numbersThe bookkeeper for Lowell?s Country Music Bar left this incomplete balance sheet. Lowell?s working capital is $90,000 and its debt to assets ratio is 40 percent.AssetsCurrent assets Cash. $ 21,000Accounts receivable Inventory 42,000Inventory (A)Prepaid expenses 9,000Total current assets (B)Long-term assetsBuilding (C)Less: Accumulated depreciation (39,000)Total long-term assets 210,000Total assets (D)Liabilities and Stockholders? EquityLiabilities.Current liabilitiesAccounts payable $ (E)Notes payable 12,000Income tax payable. 10,500Total current liabilities 37,500Long-term liabilitiesMortgage payable (F)Total liabilities. (G)Stockholders? equityCommon stock 105,000Retained earnings. (H)Total stockholders? equity. (I)Total liabilities and stockholders? equity (J)Complete the balance sheet by supplying the missing amounts.Why are externally presented reports required to be prepared according to generally accepted accounting principles while internally presented managerial accounting reports are not?Case AnalysisHow can a misstatement in one financial statement, whether intentional or not, affect a presentation in another financial statement? Give an example of an error that occurs on one financial statement and the error flows through to a second financial statement.

 

Paper#39924 | Written in 18-Jul-2015

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