The Monk Company Reports the Following Accounts and Balances on December

question 119

Essay

The Monk Company reports the following accounts and balances on December 31,2015.
$$\begin{array} { l l } \text { Accounts Payable } & \$ 14,400 \\\text { Accounts Receivable } & 8,000 \\\text { Cash } & 26,000 \\\text { Equipment } & 80,000 \\\text { Land } & 56,000 \\\text { Long-term Note Payable } & 70,000 \\\text { Merchandise Inventory } & 28,000 \\\text { Paid-in Capital } & ? \\\text { Retained Earnings } & 14,400\end{array}$$
Required:
Prepare a balance sheet at December 31,2015.

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another.

Historical Cost

The original monetary value of an asset or transaction, without adjustments for inflation or other factors.

Functional Currency

represents the currency of the primary economic environment in which an entity operates, crucial for financial reporting and determining the entity's financial results and position.

Retained Earnings

represents the cumulative amount of net income earned by a company over time that has not been distributed to shareholders as dividends.