Based on the following Information and the post-closing trial Balance that follo

Question

Based on the following Information and the post-closing trial Balance that follow, prepare a balance sheet in report form at December 31 of the current year:

The Merchandise inventory is stated at cost by the LIFO method.

The product warrant payable is a current liability.

Vacation pay payable:

Current liability $7,140

Long-term liability 3,360

The unfunded pension liability is a long-term liability.

Notes Payable:

Current liability $70,000

Long-term liability 630,000

Kornett Company POST-CLOSING TRIAL BALANCE December 31, 2016 Petty cash 4,500 Cash 243,960 Notes Receivable 100,000 Accounts Receivable 470,000 Allowance for Doubtful Accounts 16,000 Merchandise Inventory 320,000 Interest Receivable 1,875 Prepaid Insurance 45,640 Office Supplies 13,400 Land 654,925 Buildings 900,000 Accumulated Depreciation-Buildings 36,000 Office Equipment 246,000 Accumulated Depreciation-Office Equipment 44,000 Store Equipment 112,000 Accumulated Depreciation-Store Equipment 5,000 Mineral Rights 546,000 Accumulated Depletion 30,000 Patents 42,000 Social Security Tax payable 25,470 Medicare Tax payable 4,710 Employees federal Income Tax payable 40,000 State Unemployment Tax Payable 270 Federal Unemployment Tax payable 40 Salaries Payable 157,000 Accounts Payable 131,600 Interest Payable 28,000 Product Warrenty Payable 76,000 Vacation Pay Payable 10,500 Unfunded Pension Liability 50,700 Notes Payable 700,000 J. Kornett, Capital 2,345,010 3,700,300 3,700,300

Explanation / Answer

Balance Sheet

$ Assets: Non-Current Assets:     Land 654925     Buildings 900000     Less: Accumulated Depreciation (36000) 864000     Office Equipment 246000     Less: Accumulated Depreciation (44000) 202000     Store Equipment 112000     Less: Accumulated Depreciation (5000) 107000     Mineral Rights 546000     Less: Accumulated Depletion (30000) 516000     Patents 42000     Office Supplies 13400 Current Assets:     Petty Cash 4500     Cash 243960     Notes Receivable 100000     Accounts Receivable 470000     Less: Allowance for doubtful accounts (16000) 454000     Merchandise Inventory 320000     Interest Receivable 1875     Prepaid Insurance 45640 Total Assets    3569300 Liabilities:    Non-Current:     Vacation pay payable 3360     Unfunded pension liability 50700     Notes Payable 630000    Current:      Social Security Tax payable 25470      Medicare Tax payable 4710      Employees federal Income Tax payable 40000      State Unemployment Tax Payable 270      Federal Unemployment Tax payable 40      Salaries Payable 157000      Accounts Payable 131600      Interest Payable 28000      Product Warrenty Payable 76000      Vacation Pay Payable 7140      Notes Payable 70000 Capital:      J. Kornett, Capital 2345010 Total Liabiltities and Capital 3569300

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