Question

The following information is available for Crane Company

Accounts receivable $3,300 Cash $6,310
Accounts payable 4,100 Supplies 3,880
Interest payable 580 Unearned service revenue 820
Salaries and wages expense 4,900 Salaries and wages payable 850
Notes payable 31,500 Depreciation expense 600
Common stock 50,400 Equipment (net) 109,800
Inventory 2,940

Required:
Using the information above, prepare a balance sheet as of December 31, 2022.

Answer 1

Answer and Explanation:

The preparation of the balance sheet is as follows:

Assets

Accounts receivable $3,300

Cash $6,310

Supplies $3,880

Equipment (net) $109,800

Inventory $2,940

Total assets $126,230

Liabilities and stockholder equity  

Accounts payable $4,100

Interest payable $580

Unearned service revenue $820

Salaries and wages payable $850

Notes payable $31,500  

Common stock $50,400

Retained earnings (balancing figure) $37,980

Total Liabilities and stockholder equity $126,230