Problem 1- Balance sheet computations The following accounts appeared on the tra

Question

Problem 1- Balance sheet computations The following accounts appeared on the trail balance of Elbert Company at December 31, 2017 Notes Payable (short-term) Accumulated Depreciation Bldg Supplies $192,000 Accounts Receivable 783,000 Prepaid Insurance $518,400 56,250 37,800 34,200 Common Stock alaries and Wages Payable Debt Investments (long-term) Cash Bonds Payable Due 1/1/2025 Allowance for Doubtful Accts Copyrights Notes Receivable (due in 6 months) Income Taxes Payable Preferred Stock Appropriated Retained Earnings 1,125,000 281,400 Unappropriated Retained Earnings 318,000 1,580,250 465,000 73,200 170,250 Inventory 1,200,000 Land 7,800 Trading Securities 192,900Interest Payable 138,000 156,000 750,000 294,000 5,700 1,926,000 409,950 163,800 Buildings Accounts Payable Additional Paid-in Capital Instructions Compute each of the following 1. Total current assets 2. Total property, plant, and equipment 3. Total assets 4. Total current liabilities 5. Total stockholders' equity

Explanation / Answer

SOLUTION

1. Current assets = $2,566,350

2. Total plant, property and equipment = $1,608,000

3. Total assets = $4,648,650

4. Total current liabilities= $797,850

5. Total stockholder's equity = $2,650,800

Elbert company's Classified Balance sheet

Items Amount ($) Amount ($) Assets Current assets: Cash and cash equivalent 170,250 Notes receivable 138,000 Accounts receivable, net of allowance for uncollectible amounts of 7,800 510,600 Inventory 1,580,250 Supplies 37,800 Prepaid insurance 56,250 Trading securities 73,200 Total current assets 2,566,350 Long term imvestments: Debt investments 281,400 Total investments 281,400 Property, plant and Equipment Land 465,000 Buildings 1,926,000 Less: Accumulated depreciation (783,000) Net Property, plant and Equipment 1,608,000 Intangible assets: Copyrights 192,900 Total assets 4,648,650 Liabilities and owner's Equity Current liabilities Accounts payable 409,950 Interest payable 5,700 Salaries and wages payable 34,200 Notes payable 192,000 Income tax payable 156,000 Total current liabilities 797,850 Long term liabilities Bonds payable 1,200,000 Total Long term liabilities 1,200,000 Saherholder's Equity- Preferred stock 750,000 Common stock 1,125,000 Additional Paid in capital 163,800 Unappropriate retaiend earnings 318,000 Appropriate retaiend earnings 294,000 Total shareholder's equity 2,650,800 Total liabilities and owner's equity 4,648,650

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