Balance Sheet: The following is the ending balances of accounts at June 30, 2017
ID: 2408905 • Letter: B
Question
Balance Sheet:
The following is the ending balances of accounts at June 30, 2017 for WorkBee Company.
Account Title
Debits
Credits
Cash
148,000
Accounts receivable
280,000
Prepaid expenses
35,000
Land
72,000
Buildings
320,000
Accumulated depreciation—buildings
160,000
Investments
265,000
Salaries Payable
120,000
Accounts payable
173,000
Deferred Revenue
45,000
Notes payable
100,000
Mortgage payable
250,000
Common stock
100,000
Retained earnings
172,000
Totals
1,120,000
1,120,000
Additional Information:
1. The accounts receivable account consists of the following:
a. Amounts owed by customers
$225,000
b. Allowance for uncollectible accounts—trade customers
(15,000)
c. Nontrade note receivable (due in three years)
65,000
d. Interest receivable on note (due in four months)
5,000
??Total
$280,000
2. The notes payable account consists of two notes of $50,000 each. One note is due on September 30, 2017, and the other is due on November 30, 2018.
3. The mortgage payable is payable in semiannual installments of $5,000 each plus interest. The next payment is due on October 31, 2017. Interest has been properly accrued and is included in accrued expenses.
4. Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares have been issued and are outstanding.
5.The land account includes $50,000 representing the cost of the land on which the company's office building resides. The remaining $25,000 is the cost of land that the company is holding for investment purposes.
6.Deferred revenue will be recognized as revenue equally over the next two fiscal years.
7.The note payable is due in annual installments of $1,000 each.
8.Investments include $65,000 in Treasury bills purchased on November 30, 2016. The bills mature on January 30, 2018. The remaining $200,000 includes investments in marketable equity securities that the company intends to sell in the next year.
9.Prepaid expenses include $12,000 paid on December 31, 2016, for a two-year insurance plan on the assets.
10.Cash includes a $20,000 amount for compensating balance at the bank, and $50,000 cash put aside for sinking fund in support of a planned future bond issuance.
Required:
Prepare a well classified balance sheet for the WorkBee Company at June 30, 2017.
The following is the ending balances of accounts at June 30, 2017 for WorkBee Company.
Account Title
Debits
Credits
Cash
148,000
Accounts receivable
280,000
Prepaid expenses
35,000
Land
72,000
Buildings
320,000
Accumulated depreciation—buildings
160,000
Investments
265,000
Salaries Payable
120,000
Accounts payable
173,000
Deferred Revenue
45,000
Notes payable
100,000
Mortgage payable
250,000
Common stock
100,000
Retained earnings
172,000
Totals
1,120,000
1,120,000
Additional Information:
1. The accounts receivable account consists of the following:
a. Amounts owed by customers
$225,000
b. Allowance for uncollectible accounts—trade customers
(15,000)
c. Nontrade note receivable (due in three years)
65,000
d. Interest receivable on note (due in four months)
5,000
??Total
$280,000
2. The notes payable account consists of two notes of $50,000 each. One note is due on September 30, 2017, and the other is due on November 30, 2018.
3. The mortgage payable is payable in semiannual installments of $5,000 each plus interest. The next payment is due on October 31, 2017. Interest has been properly accrued and is included in accrued expenses.
4. Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares have been issued and are outstanding.
5.The land account includes $50,000 representing the cost of the land on which the company's office building resides. The remaining $25,000 is the cost of land that the company is holding for investment purposes.
6.Deferred revenue will be recognized as revenue equally over the next two fiscal years.
7.The note payable is due in annual installments of $1,000 each.
8.Investments include $65,000 in Treasury bills purchased on November 30, 2016. The bills mature on January 30, 2018. The remaining $200,000 includes investments in marketable equity securities that the company intends to sell in the next year.
9.Prepaid expenses include $12,000 paid on December 31, 2016, for a two-year insurance plan on the assets.
10.Cash includes a $20,000 amount for compensating balance at the bank, and $50,000 cash put aside for sinking fund in support of a planned future bond issuance.
Required:
Prepare a well classified balance sheet for the WorkBee Company at June 30, 2017.
Explanation / Answer
Classified Balance sheet of Work bee Company at june 30, 2017 is under
WorkBee Company As of June 30, 2017 Assets Amount ($) Current Assets Cash Cash in hand 78,000 Cash at bank 20,000 Sinking Fund investment 50,000 Accounts Receivable- Net of bad debt 2,10,000 Inventory Investments 2,00,000 Prepaid Expenses 23,000 Land- Current Investment 25,000 Interest Receivable 5,000 Total Current Assets 6,11,000 Fixed Assets Building 3,20,000 Land 47,000 Leasehold Improvements Accumulated Depreciation -1,60,000 Total Fixed Assets 2,07,000 Investment 65,000 Non Current Assets Prepaid Insurance 12,000 Notes Receivable - Non current 65,000 Total Non Current Assets 1,42,000 Total Assets: 9,60,000 Liabilities Amount Current Liabilities Account s Payable 1,73,000 Salary Payable 1,20,000 Deferred Revenue 45,000 Notes Payable -Current Portion 62,000 Mortgages payable -Current Portion 10,000 Total Current Liabilities 4,10,000 Long-term Liabilities Mortgages payable 2,40,000 Notes payable 38,000 Total Long-term Liabilities 2,78,000 Total Liabilities 6,88,000 Owner's Equity Common Stock 1,00,000 Additional Paid-in Capital Owner's Equity 1,00,000 Retained Earnings 1,72,000 Total Owner's Equity 2,72,000 Total Liabilities and Owner's Equity 9,60,000Related Questions
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