Accounting homework, chapter 2. Rasha Ghaddar 201503686 E2. A)To get the total amount of assets, we just had to add them up together one by one. B)to get the total liabilities, we also added them up and we got 720 300$.
Accounting homework, chapter 2. Rasha Ghaddar 201503686 E2. A)To get the total amount of assets, we just had to add them up together one by one. B)to get the total liabilities, we also added them up and we got 720 300$.
Accounting homework, chapter 2. Rasha Ghaddar 201503686 E2. A)To get the total amount of assets, we just had to add them up together one by one. B)to get the total liabilities, we also added them up and we got 720 300$.
Assets = Liabilities + Equity. a)To get the total amount of assets, we just had to add them up together one by one, and we got 1 030 300$.To get SMOKEY MOUNTAIN LODGE Statement of Financial Position 31 December 2013 the total liabilities, we also added them up and we got 720 300$.
b) If we assume that no payment is due on the notes payable until 2015, we notice that the amount of cash and the accounts receivable both together ( =42 000$ ) is very small comparing to the total liabilities ( 720 300$ - 620 000$ = 100 300$ ). The company will not be able to cover her debts. This statement of financial position indicates that the company is in a weak situation.
b) To reflect the loss of the asset (tent destroyed in fire, 14 300$), we report this fire as subsequent event in the notes to the financial statements that are meant to provide the reader with additional insights into the operations and financial position of the company.