hello all
i was just doing an online quiz for my accounting course that im taking in first year of university and i did the quiz and everything was correct except for one thing which i need someone to explain this to me and tell me where does this number come from.
how do you get the 22,500 under Accumulated Amortization and it says that i also need to include equipment under non current assets..why is that? and what is the number i have to put for equipment..im confused !
The question was:
JenStar has asked you to prepare a balance sheet for them. You gather the following information from JenStar:
* JenStar has a bank loan outstanding for $50,000.
* Customers owe JenStar $328,500.
* JenStar has a capital stock balance of $185,000 and a retained earnings balance of $164,000.
* JenStar has a cash balance of $71,500.
* JenStar owes various suppliers $64,500.
* JenStar owes its staff $47,000. This amount will be paid on the next payday in two weeks.
* JenStar keeps various supplies that needed to run the company. The cost of supplies currently on hand is $88,000.
* JenStar purchased all of its equipment five years ago when the company started. The total cost of all the equipment was $45,000. JenStar expects to replace all the equipment in 5 years.
Use information provided to prepare a balance sheet for JenStar.
Non-current assets (Left Column Lines 7-10)
Equipment (Left Column Line 8)
Left Column Line 8: 'Accumulated amortization' should be $22,500, but you have not entered this. This will cost you 1 mark.
You should have included 'Equipment' in this section. This will cost you 2 marks.
Left Column Line 10: Total non-current assets should be $22,500, but you have not entered this. This will cost you 1 mark.
Left Column Line 11: Total assets should be $510,500, but you have not entered this. However, your answer is consistent with the accounts you listed in this section so you will not lose any marks.
i was just doing an online quiz for my accounting course that im taking in first year of university and i did the quiz and everything was correct except for one thing which i need someone to explain this to me and tell me where does this number come from.
how do you get the 22,500 under Accumulated Amortization and it says that i also need to include equipment under non current assets..why is that? and what is the number i have to put for equipment..im confused !
The question was:
JenStar has asked you to prepare a balance sheet for them. You gather the following information from JenStar:
* JenStar has a bank loan outstanding for $50,000.
* Customers owe JenStar $328,500.
* JenStar has a capital stock balance of $185,000 and a retained earnings balance of $164,000.
* JenStar has a cash balance of $71,500.
* JenStar owes various suppliers $64,500.
* JenStar owes its staff $47,000. This amount will be paid on the next payday in two weeks.
* JenStar keeps various supplies that needed to run the company. The cost of supplies currently on hand is $88,000.
* JenStar purchased all of its equipment five years ago when the company started. The total cost of all the equipment was $45,000. JenStar expects to replace all the equipment in 5 years.
Use information provided to prepare a balance sheet for JenStar.
Non-current assets (Left Column Lines 7-10)
Equipment (Left Column Line 8)
Left Column Line 8: 'Accumulated amortization' should be $22,500, but you have not entered this. This will cost you 1 mark.
You should have included 'Equipment' in this section. This will cost you 2 marks.
Left Column Line 10: Total non-current assets should be $22,500, but you have not entered this. This will cost you 1 mark.
Left Column Line 11: Total assets should be $510,500, but you have not entered this. However, your answer is consistent with the accounts you listed in this section so you will not lose any marks.