Thursday, February 28, 2019

PE 1-6B Balance sheet

Using the following data for Sentinel Travel Service as well as the retained earnings statement shown in Practice Exercise 1-5B, prepare a balance sheet as of August 31, 2016: 

Accounts payable $ 44,600
Accounts receivable 75,500
Cash 45,400
Land 310,000
Supplies 4,700


Answer:
SENTINEL TRAVEL SERVICE 
Balance Sheet 
August 31, 2016 
Assets Liabilities 
Cash $ 45,400 Accounts payable $ 44,600 
Accounts receivable 75,500 
Supplies 4,700 Stockholders’ Equity 
Land 310,000 Common stock $116,000 
Retained earnings 275,000 
Total stockholders’ 
equity 391,000 
Total liabilities and 

Total assets $435,600 stockholders’ equity $435,600

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