Case VI- Rosario Services Below are the accounts of Rosario Services for the year ended December 31, 2015 Accounts payable Accounts receivable Capital Cosh Inventories Notes payable Property and equipment 400,000 280,000 2,480,000 2,000,000 900,000 1,400,000 1,100,000 Instructions: Prepare a statement of financial position and label its parts. After which, answer the following questions: 1. How much is the total current asset of the entity? 2. How much is the total non-current asset of the entity? 3. How much is the total current liability of the entity? 4. How much is the total non-current liability of the entity?
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Answer:
Statement of Financial Position as of December 31, 2015
Assets: Liabilities:
Current Assets: Current Liabilities:
Accounts receivable: $280,000 Accounts payable: $400,000
Cash: $2,000,000 Notes payable: $900,000
Inventories: $2,480,000
Total Current Assets: $4,760,000 Total Current Liabilities: $1,300,000
Non-current Assets: Non-current Liabilities:
Property and equipment: $1,400,000 None
Total Non-current Assets: $1,400,000 Total Non-current Liabilities: $0
Total Assets: $6,160,000 Total Liabilities: $1,300,000
Owners' Equity:
Capital: $2,480,000
Total Equity: $4,860,000
1. The total current asset of the entity is $4,760,000.
2. The total non-current asset of the entity is $1,400,000.
3. The total current liability of the entity is $1,300,000.
4. The total non-current liability of the entity is $0.