Presented below are a number of balance sheet items for Teal, Inc., for the curr

Question

Presented below are a number of balance sheet items for Teal, Inc., for the current year, 2017.

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same.

Goodwill $ 127,870 Accumulated Depreciation-Equipment $ 292,320 Payroll Taxes Payable 180,461 Inventory 242,670 Bonds payable 302,870 Rent payable (short-term) 47,870 Discount on bonds payable 15,320 Income taxes payable 101,232 Cash 362,870 Rent payable (long-term) 482,870 Land 482,870 Common stock, $1 par value 202,870 Notes receivable 448,570 Preferred stock, $10 par value 152,870 Notes payable (to banks) 267,870 Prepaid expenses 90,790 Accounts payable 492,870 Equipment 1,472,870 Retained earnings ? Debt investments (trading) 123,870 Income taxes receivable 100,500 Accumulated Depreciation-Buildings 270,520 Notes payable (long-term) 1,602,870 Buildings 1,642,870

Explanation / Answer

Note 1 - Calculation of Retained earnings from Balance sheet equation

Total assets = Total liabilities + Stockholder's Equity

Total assets = Total liabilities + Common stock + Preferred Stock + Retained Earnings

Therefore, Retained Earnings = Total assets - Total liabilities - Common stock - Preferred Stock

Retained Earnings = 4,532,910 - $3,463,593 - $202,870 - $152,870

Therefore, Retained Earnings = $713,577

TEAL INC. Classified Balance Sheet Assets Current Assets: : Cash $362,870 Notes receivable $448,570 Inventory $242,670 Prepaid expenses $90,790 Short-term Investments - Trading $123,870 Income taxes Receivable $100,500 Total current assets $1,369,270 Long Term Investments Nil Property, Land, and Equipment Land $482,870 Equipment $1,472,870 Less: Accumulated Depreciation-Equipment ($292,320) $1,180,550 Buildings $1,642,870 Less: Accumulated Depreciation-Buildings ($270,520) $1,372,350 $3,035,770 Intangible assets Goodwill $127,870 Total assets 4,532,910 Liabilities and Stockholders Equity Current liabilites: Notes Payable $267,870 Accounts payable $492,870 Payroll Taxes Payable $180,461 Rent payable $47,870 Income taxes payable $101,232 Total current liabilites $1,090,303 Long-term liabilites: Bonds payable $302,870 Less: Discount on bonds payable ($15,320) $287,550 Notes payable $1,602,870 Rent payable $482,870 Total Long-term liabilites $2,373,290 Total Liabilites $3,463,593 Stockholder's Equity Common Stock - 202,870 shares issued and Outstanding $202,870 Preferred stock - 15,287 shares issued and Outstanding $152,870 Retained earnings - (Note 1) $713,577 $1,069,317 Liabilities and Stockholders Equity $4,532,910

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.