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Likurg_2 [28]
3 years ago
6

During the month of July, the company had the following activities: Issued 4,500 shares of common stock for $450,000 cash. Borro

wed $38,500 cash from a local bank, payable in two years. Bought a building for $201,500; paid $53,500 in cash and signed a three-year note for the balance. Paid cash for equipment that cost $247,000. Purchased supplies for $10,600 on account. Prepare a classified balance sheet at July 31.
Business
1 answer:
stellarik [79]3 years ago
7 0

Answer:

<u>classified balance sheet at July 31.</u>

Assets

Non-Current Assets

Building                                                                                  $201,500

Equipment                                                                             $247,000

Total Non-Current Assets                                                    $448,500

Current Assets

Supplies                                                                                  $10,600

Cash ($450,000 + $38,500 - $53,500 - $247,000)          $188,000

Total Current Assets                                                            $198,600

Total Assets                                                                          $647,100

Equity and Liabilities

<u>Equity</u>

Common Stock                                                                   $450,000

Total Equity                                                                         $450,000

<u>Liabilities</u>

<u>Current Liabilities</u>

Account Payable                                                                   $10,600

Total Non Current Liabilities                                                $10,600

<u>Non-Current Liabilities</u>

Note Payable ($38,500 + $148,000)                                 $186,500

Total Non Current Liabilities                                              $186,500

Total Liabilities                                                                     $197,100

Total Equity and Liabilities                                                 $647,100

Explanation:

A Balance Sheet is a Financial Statement report that shows the Assets, Liability and Equity balances as at the end of the Reporting period.

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