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18 September, 10:23

Finnish Motors has the following balance sheet accounts:

Land $ 150,000

Equipment 90,000

Salaries Payable 12,000

Notes Payable 99,000

Supplies 10,000

Cash 25,000

Common Stock 40,000

Retained Earnings 100,000

Accounts Payable?

Prepaid Rent?

If the company has total assets of $290,000, what is the balance of the company's Accounts Payable account?

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  1. 18 September, 11:02
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    Accounts Payable 15,000

    Prepaid Rent 39,000

    Explanation:

    Assets:

    Cash 25,000

    Supplies 10,000

    Prepaid Rent X?

    Equipment 90,000

    Land 150,000

    Total Assets = 290,000

    We subtract from the total assets the know values to get the unknow which is, prepaid rent:

    290,000 - 150,000 - 90,000 - 10,000 - 25,000 = 15,000 prepaid rent

    Then laiblities + equity = total assets

    so we use the same idea;

    Liabilities

    Accounts Payable X?

    Salaries Payable 12,000

    Notes Payable 99,000

    Total liabilities Y?

    Equity

    Common Stock 40,000

    Retained Earnings 100,000

    Total equity 140,000

    Total Liab + SE 290,000

    290,000 - 140,000 = total liab = 150,0000

    then AP

    150,000 - 99000, - 12,000 = 39,000
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