At December 31, , Products has cash of , receivables of , and inventory of . The company's equipment totals . owes accounts payable of and long-term notes payable of . Common stock is .

Complete Question:

At December 31, 2018, Thompson Products has cash of $23,000. receivables of $15,000, and inventory of $78,000. The company's equipment totals $181.000. Thompson owes accounts payable of $20,000 and long-term notes payable of $174,000. Common stock is $33.500. Read the requirement. Start with the heading and then complete the assets section of the statement. Finally complete the liabilities and stockholders' equity section of the statement. (Classify the balance sheet by selecting the proper title on all applicable subtotal lines. In the first part complete the assets section of the balance sheet. In the second part complete the liabilities and stockholders' equity section of the balance sheet. If a box is not used in the table leave the box empty: do not select a label or enter a zero.)

Thompson Products

Thompson Products

Classified Balance Sheet

As of December 31, 2018:

Assets

Current Assets:

Cash                                           $23,000

Account receivables                     15,000

Inventory                                      78,000

Total current assets                 $116,000

Non-Current Assets:

Equipment                                $181,000

Total assets                            $297,000

Liabilities + Equity

Liabilities

Current Liabilities:

Accounts payable                   $20,000

Long-term Liabilities:

Long-term notes payable     $174,000

Total liabilities                       $194,000

Equity:

Common stock     $33,500

Retained earnings 69,500 $103,000

Total liabilities + equity      $297,000

Explanation:

a) Data and Calculations:

Cash                                           $23,000

Account receivables                  $15,000

Inventory                                    $78,000

Equipment                                $181,000

Total assets                            $287,000

Accounts payable                    $20,000

Long-term notes payable      $174,000

Common stock                        $33,500

Retained earnings (missing)  $69,500

Total Liabilities + Equity       $297,000

b) Typically, a balance sheet is classified into Assets, Liabilities, and Owners' Equity in accordance with the accounting equation.  Each category is made up of current and non-current, with the exception of the owners' equity, which is made up of owners' capital and retained earnings.  According to the accounting equation, assets = liabilities + equity.  And this equation holds true for each business transaction.