The Accountant Prepared the Following List from the Company's Accounting

question 220

Essay

The accountant prepared the following list from the company's accounting records for the year ended December 31, Year 1:
$\begin{array}{lrlr}\text { Retained Earnings } & \text { ? } & \text { Prepaid Expenses } &\$ 50,000 \\\text { Cash } & \$ 77,000 & \text { Common Stock } & 400,000 \\\text { Accounts Payable } & 50,000 & \text { Accounts Receivable } & 170,000 \\\text { Sales Revenue } & 955,000 & \text { Interest Income } & 50,000 \\\text { Cost of Sales } & 700,000 & \text { Salary Expense } & 140,000 \\\text { Land } & 750,000 & \text { Income Tax Expense } & 20,000 \\\text { Notes Payable } & 450,000 & \text { Selling Expense } & 45,000 \\\text { Inventory } & 200,000 & \text { Salaries Pavable } & 40,000\end{array}$

-Determine the following amounts for Ben & Terry's Ice Cream.
A) total assets at the end of Year 1
B) total liabilities at the end of Year
C) total equity at the end of Year 1

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Definitions:

Homeowner's Policy

An insurance policy providing coverage for damage to a person's home and possessions within, as well as liability for accidents that occur in the home or on the property.

Independent

A term in statistics that describes two or more variables which do not influence or affect each other.

Independent

Not influenced by or connected to others; in statistics, it often implies that variables are not correlated.

Independent

Not influenced or controlled by others; capable of thinking or acting for oneself.