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Golden Pineapples Pty Ltd had the following assets and liabilities at financial year end: 31 December 201931 December 2020$$Assets    Cash on hand72,30063,800Accounts receivable69,20061,900Inventory83,70067,300Buildings and equipment (net)331,300370,500Liabilities and equityAccounts payable55,70045,000Dividends payable15,80031,400Income tax payable23,90031,200Bank loan208,500164,000Share capital209,200231,900Retained earnings??a. Prepare the balance sheet for Golden Pineapples Pty Ltd as at 31 December 2020. Important:Enter amounts without dollar sign, minus sign or thousands separators, i.e. $46,000 should be written as 46000.

Question

Golden Pineapples Pty Ltd had the following assets and liabilities at financial year end: 31 December 201931 December 2020Assets    Cash on hand72,30063,800Accounts receivable69,20061,900Inventory83,70067,300Buildings and equipment (net)331,300370,500Liabilities and equityAccounts payable55,70045,000Dividends payable15,80031,400Income tax payable23,90031,200Bank loan208,500164,000Share capital209,200231,900Retained earnings??a. Prepare the balance sheet for Golden Pineapples Pty Ltd as at 31 December 2020. Important:Enter amounts without dollar sign, minus sign or thousands separators, i.e. $46,000 should be written as 46000.

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Solution

To prepare the balance sheet for Golden Pineapples Pty Ltd as at 31 December 2020, we need to list all the assets, liabilities, and equity.

Here's how to do it:

Step 1: List all the assets and their amounts:

  • Cash on hand: 63800
  • Accounts receivable: 61900
  • Inventory: 67300
  • Buildings and equipment (net): 370500

Step 2: Calculate the total assets by adding all the assets:

Total Assets = Cash on hand + Accounts receivable + Inventory + Buildings and equipment (net) Total Assets = 63800 + 61900 + 67300 + 370500 Total Assets = 563500

Step 3: List all the liabilities and their amounts:

  • Accounts payable: 45000
  • Dividends payable: 31400
  • Income tax payable: 31200
  • Bank loan: 164000

Step 4: Calculate the total liabilities by adding all the liabilities:

Total Liabilities = Accounts payable + Dividends payable + Income tax payable + Bank loan Total Liabilities = 45000 + 31400 + 31200 + 164000 Total Liabilities = 267600

Step 5: List all the equity and their amounts:

  • Share capital: 231900

Step 6: To find the retained earnings, we use the balance sheet equation:

Total Assets = Total Liabilities + Equity + Retained Earnings

So,

Retained Earnings = Total Assets - Total Liabilities - Equity Retained Earnings = 563500 - 267600 - 231900 Retained Earnings = 64000

So, the balance sheet for Golden Pineapples Pty Ltd as at 31 December 2020 would look like this:

Assets:

  • Cash on hand: 63800
  • Accounts receivable: 61900
  • Inventory: 67300
  • Buildings and equipment (net): 370500
  • Total Assets: 563500

Liabilities:

  • Accounts payable: 45000
  • Dividends payable: 31400
  • Income tax payable: 31200
  • Bank loan: 164000
  • Total Liabilities: 267600

Equity:

  • Share capital: 231900
  • Retained earnings: 64000
  • Total Equity: 295900

Total Liabilities and Equity: 563500

This balance sheet shows that the company's assets are equal to the sum of its liabilities and equity, which is a fundamental principle of accounting.

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