Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $139,000; patents and copyrights = $630,000; accounts payable = $217,500; accounts receivable = $112,500; tangible net fixed assets = $1,650,000; inventory = $299,000; notes payable = $160,000; accumulated retained earnings = $1,254,000; long-term debt = $857,000.

Prepare a 2011 balance sheet for Cornell Corp. based on the following information: cash = $139,000; patents and copyrights = $630,000; accounts payable = $217,500; accounts receivable = $112,500; tangible net fixed assets = $1,650,000; inventory = $299,000; notes payable = $160,000; accumulated retained earnings = $1,254,000; long-term debt = $857,000. (Be sure to list the accounts in order of their liquidity.)

 

CORNELL COP. Balance Sheet
Assets
Cash	$
Accounts receivable
Inventory
Current assets	$
Tangible net fixed assets
Intangible net fixed assets
Total assets	$
Liabilities
Accounts payable	$
Notes payable
Current liabilities	$
Long-term debt
Total liabilities	$
Common stock
Accumulated retained earnings
Total liabilities & owners' equity	$

Explanation:

Total liabilities and owners’ equity is:

TL & OE = CL + LTD + Common stock + Retained earnings

Solving for this equation for equity gives us:

Common stock = $2,830,500 − 1,234,500 − 1,254,000 = $342,000