Answer :
To determine the total assets and the total liabilities and equity for Alert Security Services Co. using the given financial statement, we should proceed with the following steps:
### Step 1: Calculate Total Assets
Assets are anything owned by the company that has monetary value and can include cash, receivables, supplies, prepaid expenses, land, and equipment. Here is a detailed summation:
1. Cash: [tex]$563 2. Accounts Receivable: $[/tex]4,127
3. Supplies: [tex]$188 4. Prepaid Insurance: $[/tex]141
5. Land: [tex]$4,690 6. Equipment: $[/tex]1,876
Summing these amounts gives us the total assets:
[tex]\[ \text{Total Assets} = 563 + 4127 + 188 + 141 + 4690 + 1876 = 11585 \][/tex]
### Step 2: Calculate Total Liabilities and Stockholders' Equity
Liabilities are the debts and obligations of the company, while Stockholders' Equity represents the owners' claims after liabilities have been settled. Here's what's included:
1. Accounts Payable: [tex]$1,688 2. Wages Payable: $[/tex]188
3. Common Stock: [tex]$40 4. Retained Earnings: $[/tex]8,122
5. Accumulated Depreciation - Equipment: [tex]$375 6. Dividends: -$[/tex]375 (dividends reduce retained earnings)
7. Fees Earned: $4,596 (indicating income that may have impacted retained earnings positively)
Summing these refined amounts gives us the total liabilities and equity:
[tex]\[ \text{Total Liabilities and Equity} = 1688 + 188 + 40 + 8122 + 375 - 375 + 4596 = 14634 \][/tex]
### Final Summary
Total Assets:
[tex]\[ 11585 \][/tex]
Total Liabilities and Stockholders' Equity:
[tex]\[ 14634 \][/tex]
All calculations are based on the provided financial data, ensuring completeness and adherence to financial reporting standards.
### Step 1: Calculate Total Assets
Assets are anything owned by the company that has monetary value and can include cash, receivables, supplies, prepaid expenses, land, and equipment. Here is a detailed summation:
1. Cash: [tex]$563 2. Accounts Receivable: $[/tex]4,127
3. Supplies: [tex]$188 4. Prepaid Insurance: $[/tex]141
5. Land: [tex]$4,690 6. Equipment: $[/tex]1,876
Summing these amounts gives us the total assets:
[tex]\[ \text{Total Assets} = 563 + 4127 + 188 + 141 + 4690 + 1876 = 11585 \][/tex]
### Step 2: Calculate Total Liabilities and Stockholders' Equity
Liabilities are the debts and obligations of the company, while Stockholders' Equity represents the owners' claims after liabilities have been settled. Here's what's included:
1. Accounts Payable: [tex]$1,688 2. Wages Payable: $[/tex]188
3. Common Stock: [tex]$40 4. Retained Earnings: $[/tex]8,122
5. Accumulated Depreciation - Equipment: [tex]$375 6. Dividends: -$[/tex]375 (dividends reduce retained earnings)
7. Fees Earned: $4,596 (indicating income that may have impacted retained earnings positively)
Summing these refined amounts gives us the total liabilities and equity:
[tex]\[ \text{Total Liabilities and Equity} = 1688 + 188 + 40 + 8122 + 375 - 375 + 4596 = 14634 \][/tex]
### Final Summary
Total Assets:
[tex]\[ 11585 \][/tex]
Total Liabilities and Stockholders' Equity:
[tex]\[ 14634 \][/tex]
All calculations are based on the provided financial data, ensuring completeness and adherence to financial reporting standards.