At December 31, the accounting records of Miller, Inc. contain the following items:?

Question

At December 31, the accounting records of Miller, Inc. contain the following items:

Accounts Payable 10,000 Equipment 80,000

Accounts Receivable 75,000 Land 120,000

Building 125,000 Note Payable 40,000

Capital Stock 50,000 Retained Earnings 500,000

Cash ?

How much cash is owned by Miller, Inc. at December 31 ?

Answer 1

No cash in bank stated, only assets

Answer 2

Assets = Liability + Owners Equity

Assets:

Eqmnt. + Accts Rec. + Land + Blding + Cash

80 + 75 + 120 + 125 + x (or 400 + Cash)

Liabilities:

Accts Payable + Note Payable

10 + 40 (50)

Owners' Equity:

Capital Stock + Retained Earnings

50 + 500 (550)

Plug it in your Equation: (Assets = Liability+ Owner Equity)

400 + Cash = 50 + 550

Cash = 200,000