PRACTICE PROBLEM Utilizing the following information, prepare a classified balan
ID: 2329477 • Letter: P
Question
PRACTICE PROBLEM
Utilizing the following information, prepare a classified balance sheet for Shoe Company at December 31, 2017.
Inventory
120,700
Notes Payable*
10,000
Unearned Service Revenue
90,000
Notes Receivable**
140,000
Equipment
200,000
Accounts Receivable
161,000
Cash
37,000
Notes Payable (long-term)
80,000
Allowance for Doubtful Accounts
12,000
Trading Securities***
70,500
Accumulated Depreciation - Equipment
53,000
Land
307,000
Bonds Payable due 1/1/2020
294,000
Building
200,000
Accumulated Depreciation – Bldg
130,600
Accounts Payable
3,700
Franchise
64,300
Common Stock
270,000
Retained Earnings
244,000
Prepaid Rent
45,000
Income Taxes Payable
52,000
Patent
36,400
Additional Paid-in Capital
142,600
*This portion of notes payable is the portion due in the next year.
**The Notes Receivable is due to be paid in three years.
***The company intends to sell the trading securities in the next year.
Inventory
120,700
Notes Payable*
10,000
Unearned Service Revenue
90,000
Notes Receivable**
140,000
Equipment
200,000
Accounts Receivable
161,000
Cash
37,000
Notes Payable (long-term)
80,000
Allowance for Doubtful Accounts
12,000
Trading Securities***
70,500
Accumulated Depreciation - Equipment
53,000
Land
307,000
Bonds Payable due 1/1/2020
294,000
Building
200,000
Accumulated Depreciation – Bldg
130,600
Accounts Payable
3,700
Franchise
64,300
Common Stock
270,000
Retained Earnings
244,000
Prepaid Rent
45,000
Income Taxes Payable
52,000
Patent
36,400
Additional Paid-in Capital
142,600
Explanation / Answer
Classified Balancesheet of Shoe company as on 31st December 2017
Particulars AMOUNT Current assets:- Inventory 120700 Cash 37000 Acc. Receivables 161000 Trading securities 70500 Prepaid rent 45000 434200 Fixed assets:- Equipment 200000 Less:- Acc. Depreciation 53000 147000 Land 307000 Buildings 200000 Less:- Acc. Depreciation 130600 69400 Other assets Franchise 64300 Patents 36400 100700 Notes receivable 140000 Total assets 1198300 Current liabilities:- Unearned service 90000 Allowances for doubtfull accts 12000 Income tax payable 52000 Notes payable 10000 Accounts payable 3700 167700 Long term liabilities:- Notes payable 80000 Bonds payable 294000 374000 Equity and common stock:- Common stock 270000 Additional capital 142600 Retained earnings 244000 656600 Total equity and liabilities 1198300Related Questions
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