Prepare a December 31 Balance Sheet in Proper Form for Smokey

question 205

Essay

Prepare a December 31 balance sheet in proper form for Smokey River Supplies, Inc. from the following list of the accounts: $\begin{array}{llcc} \text { Cash...............................} &\$10,000\\\\ \text {Accounts receivable......... } &8,000\\ \text { Supplies.......................... } &12,000\\ \text { Equipment...................... } &35,000\\ \text {Land................................ } &18,000\\ \text { Accounts payable............ } &13,000\\ \text {Notes payable................... } &41,000\\ \text { Stockholders' equity......... } &29,000\\\end{array}$

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Definitions:

General Journal

A primary accounting record where financial transactions are entered before being posted to ledger accounts.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Horizontal Analysis

A technique in financial analysis where line items on financial statements are compared across subsequent periods to identify trends or significant changes.

Vertical Analysis

A method in financial analysis where each entry in a statement is listed as a proportion of another item, often used to compare line items over different periods.