Prepare a balance sheet given the following information for Alaskan Orange Corp. as of December 31, 2010:

Prepare a balance sheet given the following information for Alaskan Orange Corp. as of December 31, 2010: cash = $195,000; patents and copyrights = $849,000; accounts payable = $294,000; accounts receivable = $255,000; tangible net fixed assets = $5,120,000; inventory = $540,000; notes payable = $187,000; accumulated retained earnings = $4,606,000; long-term debt = $1,230,000. (Do not include the dollar signs ($).)

Balance Sheet
Cash	$	195,000	Accounts payable	$	294,000
Accounts receivable		255,000	Notes payable		187,000
Inventory		540,000	Current liabilities	$	481,000
Current assets	$	990,000	Long-term debt		1,230,000
			Total liabilities	$	1,711,000
Tangible net fixed assets	$	5,120,000
Intangible net fixed assets		849,000	Common stock		642,000
			Accumulated retained earnings		4,606,000
Total assets	$	6,959,000	Total liabilities & owners’ equity	$	6,959,000

Explanation:

Owners’ equity has to be total liabilities & equity minus accumulated retained earnings and total liabilities, so:

 

Owner’s equity = Total liabilities & equity – Accumulated retained earnings – Total liabilities

Owners’ equity = $6,959,000 – 4,606,000 – 1,711,000

Owners’ equity = $642,000