Question

Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores. Debit Credit Accounts receivable-trade 694 Building and equipment 924 Cash-checking 38 Interest receivable 40 Inventory 21 Land 166 Notes receivable (long-term) 496 Petty cash fund 8 Prepaid rent 35 Supplies 12 Trademark 45 Accounts payable-trade 642 Accumulated depreciation 77 Additional paid-in capital 468 Allowance for uncollectible accounts 19 Cash dividends payable 24 Common stock, at par 11 Income tax payable 63 Notes payable (long-term) 836 Retained earnings 306 Deferred revenues 33 TOTALS 2,479 2,479 What would Symphony report as total shareholders' equity?

Answer 1

Answer:

Symphony would  report $ 785 million as total shareholders' equity

Explanation:

Use the Balance Sheet to find the total shareholders' equity as Follows :

Assets

Non-Current Assets

Building and equipment                      924

Land                                                       166

Notes receivable (long-term)               496

Trademark                                              45

Accumulated depreciation                   (77)

Total Non-current assets                   1,554

Current Assets

Accounts receivable-trade                   694

Allowance for uncollectible accounts  (19)

Petty cash fund                                        8

Prepaid rent                                            35

Supplies                                                   12

Cash-checking                                        38

Interest receivable                                 40

Inventory                                                 21

Total Current Assets                             829

Total Assets                                       2,383

Equity and Liabilities

Equity (Balancing figure)                     785

Total Equity                                         785

Non - Current Liabilities

Notes payable (long-term)                 836

Total Non - Current Liabilities            836

Current Liabilities

Accounts payable-trade                    642

Cash dividends payable                      24

Income tax payable                             63

Deferred revenues                              33

Total Current  Liabilities                    762

Total Equity and Liabilities             2,383

Conclusion :

Symphony would  report $ 785 million as total shareholders' equity