Question: Joan Paul is the bookkeeper for Gazelle Company. Joan has been trying to get the balance sheet of Gazelle firm to balance. It finally balanced, but now he is not sure it is correct.
Gazelle Company
Balance Sheet
December 31, 2007
|
Assets
|
Liabilities and Stockholders' Equity
|
|
Cash
|
$18,500
|
Accounts payable
|
$16,000
|
|
Supplies
|
9,500
|
Accounts receivable
|
(12,000)
|
|
Equipment
|
40,000
|
Common stock
|
40,000
|
|
Dividends
|
10,000
|
Retained earnings
|
34,000
|
|
Total assets
|
$78,000
|
Total liabilities and stockholders' equity
|
$78,000
|