Preparation of Balance Sheet
Prepare the Balance Sheet as of December

question 132

Essay

Preparation of balance sheet
Prepare the balance sheet as of December 31, 2009, for Gamma Company, from the following list of items which are arranged in random order. You must compute the amount for accounts payable to complete the balance sheet.
$\begin{array}{|l|r|l|l|r|}\hline \text { Accounts payable } & \$ ? & & \text { Land } & \$ 260,000 \\\hline \text { Office equipment } & \$ 41,600 & & \text { Notes payable } & \$ 377,000 \\\hline \text { Buildings } & \$ 533,000 & & \text { Accounts receivable } & \$ 97,500 \\\hline \text { Capital stock } & \$ 494,000 & & \text { Cash } & \$ 19,760 \\\hline & & & & \\\hline\end{array}$

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Definitions:

SRS

Simple Random Sampling, a sampling method where every member of a population has an equal chance of being selected.

P-value

A statistical measure that helps in determining the significance of results obtained in a hypothesis test, indicating the probability of observing the results if the null hypothesis were true.

Normal Distribution

A symmetric, bell-shaped frequency distribution curve where most occurrences take place around the central peak and probabilities for values taper off equally towards either end.

Maximum Oxygen Uptake

The maximum rate at which an individual can consume oxygen during intense or maximal exercise, indicative of aerobic capacity.