Question

Bob's Shoe Warehouse, Incorporated, previously called DSW, sells luxurious and fashionable shoes. Its balance sheet, at August 3, 2019 (the first Saturday of the month), contained the following items and approximate amounts (in millions).
Amounts owed to suppliers Bob's Shoe Warehouse's right to collect on account Currency and bank account balances Common stock issued to stockholders Warehouses, stores, and offices Merchandise held for sale Amounts owed for promissory notes Accumulated profits of the company $ 676 98 88 486 1,765 752 1,245 296
Required:
1. Give the account name commonly used for each item listed.
2. Prepare the balance sheet as of August 3, 2019. providing appropriate totals and subtotals.
3. As of August 3, did most of the financing for assets come from creditors or stockholders?

Answer 1

Answer:

1. The account name commonly used for each of the item listed are as follows:

• Amounts owed to suppliers=Accounts payable
• Bob's Shoe Warehouse's right to collect on account= Accounts Receviable
• Currency and bank account balances=Cash and Bank balance
• Common stock issued to stockholders= Common stock
• Warehouses, stores, and offices= Property, plant and equipment
• Merchandise held for sale=Inventory
• Amounts owed for promissory notes=Notes payable
• Accumulated profits of the company=Retained earnings

2. The balance sheet will give the total worth of the business to be $2,703

3. Most of the financing for assets to the company came from Creditors.

Explanation:

1. The account names which are commonly used by the companies are under current assets, current liabilities, or under shareholders equity.

The accounts under current assets includes: cash and bank balance, the accounts receviables, inventory, and many more.

The accounts under current liabilities includes: notes payable, accounts payable, and many more.

The accounts under shareholders equity are: common stock, and retained earnings.

2. The balance sheet as of August 3, 2019:

The image attached below.

3. Most of the financing for assets come from creditors of the company, this is analysed from comparing the total amounts of total liabilities which is $1,921 and stockholders' equity is $782.