Suppose a local company has the following balance sheet accounts. Calculate the missing amounts assuming the business has total assets of $37,500.

Accounts Balances

Land $9,000

Equipment

Salaries Payable 4,300

Notes Payable

Supplies 2,100

Cash 7,200

Stockholders' Equity 13,500

Accounts Payable 1,700

Prepaid Rent 3,200

Equipment = $16,000

Notes payable = $18,000

Explanation:

The computations are shown below:

Total assets = Land + equipment + Supplies + cash + prepaid rent

$37,500 = $9,000 + equipment + $2,100 + $7,200 + $3,200

$37,500 = $21,500 + equipment

So, the equipment would be

= $37,500 - $21,500

= $16,000

And,

Total assets = Total liabilities + stockholder equity

where,

Total liabilities = Salaries payable + notes payable + accounts payable

Now the value would be

$37,500 = $4,300 + notes payable + $1,700 + $13,500

$37,500 = $19,500 + notes payable

So, the notes payable would be $18,000