The Balance Sheet - The Balance Sheet (or Statement of...

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The Balance Sheet (or Statement of Financial Position) MAXIDRIVE CORP. Balance Sheet At December 31, 20A (in thousands of dollars) Assets Cash $4,895 Accounts receivable 5,714 Inventories 8,517 Plant and equipment 7,154 Land 981 Total assets $27,261 Liabilities Accounts payable $7,156 Notes payable 9,000 Total liabilities $16,156 Stockholders’ Equity Contributed capital $2,000 Retained earnings 9,106 Total stockholders’ equity 11,105 Total liabilities and stockholders’ equity $27,261 Balance sheet is a financial snapshot at a specific point in time; reports the assets, liabilities and stockholder’s equity for an economic unit. Assets: probable future economic benefits owned by the business as a result of past transactions which have future value to the entity. Cost accounting: every asset is initially recorded on the balance sheet at its original
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acquisition cost. Liabilities: probable debts or obligations of the business that result from past transactions and will be paid with assets or services in the future. 7
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This note was uploaded on 01/31/2011 for the course ACCOUNTING 301 taught by Professor Chen during the Spring '10 term at George Mason.

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The Balance Sheet - The Balance Sheet (or Statement of...

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