Presented Below Is Selected Financial Information for Stanley's Bike Shop

question 168

Essay

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare its balance sheet at December 31,2011.
$\begin{array}{|l|r|}\hline\text { Total Assets at December 31,2011 } & \$ 91,000 \\\hline 2011 \text { Expenses } & 38,000 \\\hline \text { Total Equity at December 31, 2010 } & 48,000 \\\hline \text { Total Liabilities at December 31,2011 } & 35,000 \\\hline \text { 2011 Revenues } & 46,000\\\hline\end{array}$

Recognize obsolescence and its effect on the depreciation and carrying amount of assets.

Define and calculate total asset turnover and interpret its significance in assessing company performance.

Understand the functionalities and purposes of different Microsoft Office applications.

Recognize and utilize basic navigation features within Office applications.

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Definitions:

Purchases

The acquisition of goods or services by a company for use in its operations or for resale.

Income Summary Account

The income summary account is used during the closing process to compile all income and expense transactions, facilitating the determination of a business's net income.

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.