Question & Answer: The following information was taken from the accounting records of XYZ Company for the year ended December 31, 2021:…..

```The following information was taken from the accounting records of XYZ
Company for the year ended December 31, 2021:

Utilities payable ...........  \$12,000
Retained earnings ...........  \$37,000 (at January 1, 2021)
Inventory ...................  \$26,000
Accumulated depreciation ....  \$15,000
Cash ........................  \$11,000
Mortgage payable ............  \$30,000 (due April 1, 2024)
Cost of goods sold ..........  \$35,000
Building ....................     ?
Income tax expense ..........  \$24,000
Patent ......................  \$17,000
Utilities expense ...........     ?
Interest revenue ............  \$55,000
Accounts payable ............  \$27,000
Dividends ...................     ?
Notes payable ...............  \$39,000 (due October 1, 2022)
Accounts receivable .........  \$36,000
Sales revenue ...............  \$94,000
Equipment ...................  \$79,000
Common stock ................  \$81,000
Supplies ....................  \$21,000

The following additional information is available:

1.  The total P-P-E at December 31, 2021 was double the amount of
total current liabilities at December 31, 2021.

2.  25% of XYZ Company's 2021 net income was paid to stockholders
as dividends.

3.  Total equity at December 31, 2021 was equal to \$163,000.

Calculate the balance in the building account at December 31, 2021?
```

Total current liabilities

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Question & Answer: The following information was taken from the accounting records of XYZ Company for the year ended December 31, 2021:…..
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= Utilities Payable + Accounts Payable + Notes Payable (due on October 1, 2022)

= \$12,000 + \$27,000 + \$39,000

= \$78,000

Total PPE is double the amount of total current liabilities.

Therefore,

Total PPE = \$78,000 x 2 = \$156,000

Also.

Total PPE = Buildings + Equipment

Thus,

\$156,000 = Buildings + \$79,000

Or,

Buildings = \$156,000 – \$79,000 = \$77,000

The balance of building account at December 31, 2021 is \$77,000.