Preparation of Balance Sheet After a Series of Transactions
the

question 35

Essay

Preparation of balance sheet after a series of transactions
The balance sheet was as follows for Custom Ceramics on February 1, 2010:
$\begin{array}{c}\text {Custom Ceramics}\\\text { Balance Sheet }\\\text {February 1, 2010}\\\begin{array}{|l|r|l|l|r|r|}\hline \text { Assets } & & & \text { Liabilities \& Shareholder's' Equity } \\\hline \text { Land } & 80,000 & & \text { Liabilities: } & & \\\hline \text { Buildings } & 50,000 & & \text { Notes payable } & & \$ 40,000 \\\hline \text { Office Equipment } & 30,000 & & \text { Accounts payable } & & \underline{6,000} \\\hline \text { Accounts receivable } & 5,200 & & \text { Total liabilities } & & 46,000 \\\hline \text { Cash } & \$ 7,000 & & \text { Shareholders' equity } & & \\\hline & & & \text { Share capital } & \$ 100,000 & \\\hline & & & \text { Retained earnings } & 26,200 & \$ 126,200 \\\hline & & & \text { Total liabilities } & & \\\hline \text { Total assets } & \$ 172,200 & & \text { Shareholders' equity } & & \$ 172,200 \\\hline \end{array}\end{array}$
During the first week of February, the following transactions occurred:
* The business used cash to pay off $5,000 of its accounts payable. (No payment was made on the notes payable.)
* Additional share capital was issued to Joan Custom for $15,000 cash.
* Equipment was purchased on credit for $1,800
* The business collected $4,000 cash from accounts receivable.
Complete the balance sheet for Custom Ceramics as of February 8, 2010.
$\begin{array}{c}\text {Custom Ceramics }\\\text {Balance Sheet }\\\text {February 8,2010}\\\begin{array}{|l|l|l|l|l|l|}\hline\text { Assets } &\quad\quad &\quad\quad & \text { Liabilities \& Shareholders' Equity } \\\hline \text { Land } & & & \text { Liabilities: } & \quad\quad&\quad\quad \\\hline \text { Buildings } & & & \text { Notes payable } & & \$ \\\hline \text { Office Equipment } & & & \text { Accounts payable } & & \\\hline \text { Accounts receivable } & & & \text { Total liabilities } & & \$ \\\hline \text { Cash } & & & \text { Shareholder's' equity } & & \\\hline& & & \text { Share capital } & & \\\hline & & & \text {Retained earnings}& & \$ \\\hline & & & \text {Total liabilities} & & \\\hline \text { Total assets} & \$ & & \text {Shareholder's' equity} & & \$ \\\hline \end{array}\end{array}$

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Definitions:

Bartolomé de Las Casas

A 16th-century Spanish historian and Dominican friar who became the first advocate for the rights of indigenous peoples in the Americas.

Destruction of the Indies

A short account written by the Spanish Dominican friar Bartolomé de las Casas in 1542, detailing the mistreatment of Indigenous peoples in the Americas by European colonizers.

Indian Enslavement

The historical practice of enslaving Indigenous peoples in the Americas, especially prominent during European colonization and expansion.

New France

The area colonized by France in North America from the 16th to the 18th century, including parts of present-day Canada and the United States.