Concept explainers
Financial statements, including statement of
Pendray Systems Corporation began operations on January 1, 20Y5 as an online retailer of computer software and hardware. The following financial statement data were taken from Pendrays records at the end of its first year of operations. December 31, 20Y5.
Instructions
Prepare a balance sheet as of December 31. 20Y5.
Balance sheet- It records the company's assets, stockholder's equity and liabilities at a point in time. The balance sheet also known as statement of financial condition is expressed in the accounting equation as:
The balance sheet is prepared using accounting equation in vertical form. Also, the balance on assets side must be equal to sum of balances of liabilities and stockholder's equity.
To prepare:
The balance sheet of company A as of December 31, 20Y5.
Answer to Problem 1.5.3P
The balance sheet of Company A reports total assets of $500000 is equal to the sum of total liabilities of $135000 and stockholder's equity of $365000.
Explanation of Solution
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