Question

TOPIC #2 - Posted Tuesday- The properly classified Balance Sheet 1) Prepare a properly formatted Asset section of the Balance Sheet Trading securities 6,000 Accumulated depreciation on equipment and furniture 15,000 Cash 11,000 Inventory 30,000 Equipment 25,000 Patent 4,000 Investments: Equity 100,000 Prepaid expenses 2,000 Land 18,000 2) Prepare a properly formatted Asset section of the Balance Sheet Debit Credit Accumulated depreciation on equipment 24,000 Trading securities 6,000 Accumulated depreciation on furniture 15,000 Cash 11,000 Inventory 30,000 Equipment 150,000 Furniture 35,000 Patent 4,000 Allowance for Uncollectible accounts 6,000 Accounts Receivable 40,000 Prepaid expenses 2,000 Land held for future business site 18,000 Goodwill 20,000 Buildings 300,000 Accumulated depreciation on buildings 120,000

Answer 1

Solution and Explanation:

                   A Balance Sheet  is as follows:

Assets

Current assets    

Cash                                     11000  

Trading securities                   6000  

Accounts receivable (net)  24000  

Inventory                             30000  

Prepaid expense                       2000  

The Total current assets                                                         73000

The Long term investment    

Land held for future business site  18000  

The Total investment                                                                  18000

Property,plant and equipment    

Equipment                                    25000  

Less: the Accumulated depreciation

on equipment and furniture      -15000  

Total property,plant and equipment                                 10000

Intangible assets    

Patent                                               4000  

The Total intangible assets                                                            4000

The Total Assets                                                                           105000