The trial balance for K and J Nursery, Inc., listed the following account balanc
ID: 2589965 • Letter: T
Question
The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, the end of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventories, $25,000; equipment (net), $80,000; accounts payable, $14,000; wages payable, $9,000; interest payable, $1,000; note payable (due in 18 months), $30,000; common stock, $50,000.
Calculate total current assets and total current liabilities that would appear in the company's year-end balance sheet.
Determine the year-end balance in retained earnings for K and J Nursery, Inc.
Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $140,000.
Why would investors prefer to see a classified balance sheet? Explain how such presentation and information is useful to them.
Explanation / Answer
Calculate total current assets and total current liabilities that would appear in the company's year-end balance sheet.
Determine the year-end balance in retained earnings for K and J Nursery, Inc.
Determine the year-end balance in retained earnings for K and J Nursery, Inc.
In classified balance sheet investor can judge whole assets and liabilities situation for investment decision
Total current assets Cash 16000 Account receivable 11000 Inventories 25000 Total current assets 52000Related Questions
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