1102AFE Accounting for Decision Making Trimester 1 2017

Balance Sheet at 31 January.

Total of the Current Assets Total of the Non-Current Assets

Cash at bank $50,000 Land $175,000

Accounts receivable $48,600 Inventory $40,000
Prepaid rent $1,400 Office furniture $14,000
Total $100,000 LESS Furniture Depreciation $2,000
Total $227,000

Total of the Current Liabilities Total of the Non-Current Liabilities

Accounts payable $20,000 Loan payable--long term $120,000

Unearned revenue $1,800 Total $120 000
Total $21,800

Prove that the amount of Capital is $185,200

OE = A L
OE = (Total Current assets + Total Non-current Assets) (Total Current Liabilities + Non current
liabilities)
OE = (100,000 + 227,000) (21,800+120,000)
OE = $185,200