Question

Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash = $145,000; Patents and copyrights = $630,000; Accounts payable = $222,000; Accounts receivable = $135,000; Tangible net fixed assets = $1,665,000; Inventory = $302,000; Notes payable = $130,000; Accumulated retained earnings = $1,242,000; Long-term debt = $863,000. (Be sure to list the accounts in order of their liquidity. Do not round intermediate calculations.)

Answer 1

The 2018 balance sheet for Rogers Corp lists assets in order of liquidity, followed by liabilities, and shareholder's equity, confirming the balance sheet is balanced with assets equaling liabilities plus shareholder's equity.

Step-by-step explanation:

Balance Sheet of Rogers Corp for 2018

To prepare the balance sheet for Rogers Corp, we'll list the assets in order of liquidity, followed by liabilities, and then shareholder's equity. The balance is calculated by the accounting equation Assets = Liabilities + Shareholder's Equity.

Assets

• 
  
• Cash: $145,000
• 
  
• Accounts Receivable: $135,000
• 
  
• Inventory: $302,000
• 
  
• Tangible Net Fixed Assets: $1,665,000
• 
  
• Patents and Copyrights: $630,000

Liabilities

• 
  
• Accounts Payable: $222,000
• 
  
• Notes Payable: $130,000
• 
  
• Long-term Debt: $863,000

Shareholder's Equity

• 
  
• Accumulated Retained Earnings: $1,242,000

After listing all the items, the total of Assets is $2,877,000, the total of Liabilities is $1,215,000, and Shareholder's Equity is $1,242,000. The sum of Liabilities and Shareholder's Equity equals the total Assets, confirming that the balance sheet is balanced correctly. This concludes the balance sheet preparation for Rogers Corp.

Answer 2

2018 Balance Sheet

$145,000 Cash

$135,000 Accounts Receivable

$302,000 Inventory

$582,000 TOTAL CURRENT ASSETS

$1,.665,000 Tangible Net Fixed Assets

$630,000 Patents and Copyrights

$2,295,000 TOTAL NONCURRENT ASSETS

$2,877,000 TOTAL ASSETS

$222,000 Accounts Payable

$130,000 Notes Payable

$352,000 TOTAL CURRENT LIABILITIES

$863,000 Long Term Debt

$863,000 TOTAL NONCURRENT LIABILITIES

$1,215,000 TOTAL LIABILITIES

$1,242,000 Retained Earnings

$1,242,000 TOTAL EQUITY

$2,457,000 TOTAL EQUITY + LIABILITIES

Step-by-step explanation:

Liquidity it's define as the speed of an assets to be converted to cash,

the assets that take less days to buy or to sold are more liquid than others.

Cash it's the assets most liquid then are the Accounts Receivables and Inventories for last, in the middle exist different assets as Equity investments.

Prepaid expenses are not liquid because these accounts doesn't means the company could get cash if not that the company have rights over something.

Section of Current Assets , the criteria is to have a liquidity speed less of one year

Cash

Accounts Receivable

Inventory

Section of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets

Tangible Net Fixed Assets

Patents and Copyrights

Section of Current Liabilities , the criteria is to have a liquidity speed less of one year

Accounts Payable

Notes Payable

Section of Total Equity

Retained Earnings