Preparation of Balance Sheet
Prepare the Balance Sheet as of December

question 41

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.
$\begin{array}{lrlr}\text { Accounts Payable } & \$ ? & \text { Land } & \$ 260,000 \\\text { Land } & \$ 41,600 & \text { Notes Payable } & \$ 377,000 \\\text { Building } & \$ 533,000 & \text { Accounts rec eivable } & \$ 18,750 \\\text { Share capital } & \$ 494,000 & \text { Cash } & \$ 19,760\end{array}$

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Definitions:

Z Test

A statistical test used to determine if there is a significant difference between the mean of a sample and the mean of a population.

Proportions

The fraction of a whole expressed as a percentage, ratio, or fraction, representing parts of a larger quantity or population.

P-Value

The possibility of encountering test findings at least as significant as the observed results, assuming the validity of the null hypothesis.

Normal Distribution

A bell-shaped distribution that is symmetric about the mean, where data near the mean are more frequent in occurrence than data far from the mean.