80.2K

Verified Solution

Link Copied!

image

I want to know exactly how they work. Thank you very much

Assets RM QUESTION 4 Presented below is the balance sheet for the Sun Company as of March 31, 2020 Sun Company Balance Sheet As of March 31, 2020 RM Liabilities Cash 7,100 Accounts Payable 7.200 Accounts Receivable 5.000 Notes Payable 8.300 Merchandise Inventory 13.500 Total Liabilities, 15.500 Prepaid Rent 3.300 Paid in Capital 17,600 Store Equipment 15.600 Retained Earnings 11.400 Total Stockholders' equity 29.000 Total Assets 44,500 Total Liab. & Stockholders' Equity 44.500 The following transactions occurred during April, 2020: 1. The company paid RM2,100 of the accounts payable. 2. The company acquired RM3,500 of merchandise inventory, paying 40% in cash and the remainder on open account. 3. The utility bill of RM600 for the month of April was paid. 4. The company received RM2,200 from its credit customers 5. Sales of merchandise inventory for the month of April totaled RM12.900, of which RM5,400 was paid in cash and the remaining amount was on open account. The cost of the merchandise sold was RM8,100. 6. Sales order of RM2,300 received from a customer on 29 April will be supplied in May. 7. The company paid RM 1,600 of the note payable. 8. Depreciation on the store equipment was RM600 for the month. 9. Additional store equipment of RM 1,700 was acquired of this amount, RM700 was paid in cash and the remainder was added to the note payable balance. 10. The balance in the prepaid rent account represented 3 months' worth of rent paid in advance as of March 31, 2020 11. Net income for the month ended April 30 was RM2,500. Required: Prepare a balance sheet dated April 30, 2020 of the Sun Company in proper format. Show the computations (20 marks)

Answer & Explanation Solved by verified expert

See Answer