apter 2 Homework Assignmerx G The full disclosure principle dict X diy plus ques
ID: 2333772 • Letter: A
Question
apter 2 Homework Assignmerx G The full disclosure principle dict X diy plus questions eam M Weeky C Untrodx+ m/courses/1119 335 Question 12 These items are taken from the financial statements of Skysong, Inc. at December 31,2017 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1,2017) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue $ 93,104 11,088 2816 10,419 72.512 53,856 686 4,664 2,288 52,800 35,199 40,128 8.360 82.368 16.474 3,168 12,936 Prepare a classifed balance sheet. Assume that $ 11,968 of the note payable will be paid in 2018. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment) Skysong, Inc.Explanation / Answer
Solution:
Skysong. Inc.
Balance Sheet
At December 31, 2017
ASSETS
Current Assets
Cash
$ 10,419
Accounts receivable
11,088
Prepaid Insurance
2,816
Total current assets
$ 24,323
Property, plant, and equipment
Land
$ 53,856
Building
$ 93,104
Less: Accumulated depreciation— building
40,128
52,976
Equipment
72,512
Less: Accumulated depreciation— equipment
16,474
56,038
162,870
Total assets
$ 187,193
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 8,360
Current portion of note payable
11,968
Interest payable
3,168
Total current liabilities
$ 23,496
Long-term liabilities
Notes payable ($ 82,368 - 11,968)
70,400
Total liabilities
$ 93,896
Stockholders' equity
Common stock
$ 52,800
Retained earnings as on 31 December 2017 (WN 1)
40,497
Total stockholders' equity
$ 93,297
Total liabilities and Stockholders' equity
$ 187,193
Working Note (WN):
1. Retained earnings as on 31 December 2017 (WN 1)
= Retained earnings as on 1st January 2017 + Net Income *
= $ 35,199 + $ 5,298
= $ 40,497
* Net Income = Service Revenue –Insurance expense – Depreciation expense – Interest expense
= $ 12,936 – 686 – 4,664 – 2,288
= $ 5,298
If you find this solution helpful, kindly rate.
Good luck.
ASSETS
Current Assets
Cash
$ 10,419
Accounts receivable
11,088
Prepaid Insurance
2,816
Total current assets
$ 24,323
Property, plant, and equipment
Land
$ 53,856
Building
$ 93,104
Less: Accumulated depreciation— building
40,128
52,976
Equipment
72,512
Less: Accumulated depreciation— equipment
16,474
56,038
162,870
Total assets
$ 187,193
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 8,360
Current portion of note payable
11,968
Interest payable
3,168
Total current liabilities
$ 23,496
Long-term liabilities
Notes payable ($ 82,368 - 11,968)
70,400
Total liabilities
$ 93,896
Stockholders' equity
Common stock
$ 52,800
Retained earnings as on 31 December 2017 (WN 1)
40,497
Total stockholders' equity
$ 93,297
Total liabilities and Stockholders' equity
$ 187,193
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.