Answer:
<u>Blessinger Co.</u>
<u>Classified Balance Sheet as at December 31, 2017</u>
ASSETS
<u>Non- Current Assets</u>
Office equipment $38,000
Accumulated depreciation-Equipment ($3,200) $34,800
Building $288,000
Accumulated depreciation-Building ($42,000) $246,000
Land $700,000
Total Non Current Assets $980,800
<u>Current Assets</u>
Accounts receivable $27,000
Prepaid Prepaid $15,000
Insurance $9,000
Office supplies $3,300
Cash $112,000
Total Current Assets $166,300
TOTAL ASSETS $1,157,100
EQUITY AND LIABILITIES
LIABILITIES
<u>Current Liabilities</u>
Accounts payable $25,800
Salaries payable $14,500
Interest payable $2,500
Note Payable $9,000
Total Current Liabilities $51,800
<u>Non-Current Liabilities</u>
Long-term note payable ($72,000 - $9,000) $63,000
Total Non- Current Liabilities $63,000
TOTAL LIABILITIES $114,800
EQUITY
P.Blessinger, Capital $910,000
P. Blessinger, Withdrawals ($200,500)
Profit for the Year $332,800
TOTAL EQUITY $1,042,300
TOTAL EQUITY AND LIABILITIES $1,157,100
Explanation:
A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.
<u>Calculation of Profit for the year :</u>
$ $
Service fees earned 430,800
<em>Less Expenses</em>
Salaries expense 90,000
Insurance expense 5,200
Rent expense 5,000
Depreciation expense-Equipment 800
Depreciation expense-Building 7,000 (108,000)
Profit for the year 332,800
