Question

Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable $ 6,800 Retained earnings $ 58,000 Buildings 67,800 Notes payable (due in 9 years) 46,000 Prepaid rent 7,800 Office supplies 3,600 Merchandise inventory 15,600 Land 38,000 Accounts payable 18,000 Accumulated depreciation-Building 6,600 Prepaid insurance 4,600 Mortgages payable (due in 5 years) 28,000 Accounts receivable 12,000 Cash 32,000 Common stock 18,000 Required: Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Answer:

                                     Adams Co.

                        Balance Sheet as of December 31.

Assets

Current Assets

Cash                               $32,000  

Accounts Receivable $12,000  

Merchandise Inventory $15,600  

Office Supplies              $3,600  

Prepaid Rent                  $7,800

Prepaid Insurance          $4,600  

Total Current Assets                                         $ 75,600

Property, Plant and Equipment

Land                                                                    $38,000

Building                                 $67,800

Accumulated Depreciation $(6,600)                $61,200

(Buildings)  

Total Assets                                                        $ 174,800

Liabilities

Current Liabilities

Accounts Payables                $18,000

Salaries Payable                    $6,800

Total Current Liabilities                               $24,800

Long term Liabilities

Notes Payable                                                      $46,000

Mortgage Payable                                               $28,000

Total Long term Liabilities                                  $74,000

Total Liabilities                                                     $98,800

Stockholder's Equity  

Common Stock                       $18,000

Retained Earnings                  $58,000

Total Stockholder's Equity                                 $76,000

Total Liabilities & Stockholder's Equity           $174,800