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The bookkeeper for Lowell’s Country Music Bar

Price: $1.99



The bookkeeper for Lowell’s Country Music Bar left this incomplete balance sheet. Lowell’s
working capital is $90,000 and its debt to assets ratio is 40 percent.

Assets
Current assets
Cash $ 21,000
Accounts receivable 42,000
Inventory (A)
Prepaid expenses 9,000
Total current assets (B)
Long-term assets
Building (C)
Less: Accumulated depreciation (39,000)
Total long-term assets 210,000
Total assets $ (D)
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable $ (E)
Notes payable 12,000
Income tax payable 10,500
Total current liabilities 37,500
Long-term liabilities
Mortgage payable (F)
Total liabilities (G)
Stockholders’ equity
Common stock 105,000
Retained earnings (H)
Total stockholders’ equity (I)
Total liabilities and stockholders’ equity $ (J)

Required
Complete the balance sheet by supplying the missing amounts

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