Prepare a December 31 Balance Sheet in Proper Form for Smokey

question 177

Essay

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts:
$\begin{array}{llr} \text { Cash } &\$10,000\\ \text { Accounts receivable } &8,000\\ \text { Supplies} &12,000\\ \text { Equipment} &35,000\\ \text { Land} &18,000\\ \text { Accounts payable } &13,000\\ \text { Notes payable } &41,000\\ \text { Common stock } &20,000\\ \text { Retained earnings} &9,000\\\end{array}$

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Definitions:

Noncash Financing

Funding activities that involve liabilities and equity but do not involve the inflow or outflow of cash, such as issuing stock or converting debt to equity.

Financial Statements

Documents that present a business's financial performance and position, typically including the balance sheet, income statement, and cash flow statement.

Investing Activities

These are transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Financing Activities

Transactions related to raising capital and repaying investors, impacting the equity and long-term debt of an entity.