Question Completion:
Prepare a classified balance sheet as of December 31, 2021.
Answer:
Strong Corporation
STRONG CORPORATION
Classified Balance Sheet
As of December 31, 2021
Assets
Current Assets:
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000 $210,900
Total current assets
Long-Term Investments $57,000
Long-term assets:
Land 46,000
Buildings 278,000
Acc. depreciation 83,000 195,000 $241,000
Total assets $508,900
Liabilities and Equity
Current liabilities:
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000 $110,200
Long-term liabilities:
Notes payable, due 2031 $121,000
Equity:
Common stock 210,000
Retained earnings 67,700 $277,700
Total liabilities and equity $508,900
Explanation:
a) Data and Analysis:
STRONG CORPORATION
Post-closing Trial Balance
December 31, 2021
Accounts Debit Credit
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000
Long-Term Investments 57,000
Land 46,000
Buildings 278,000
Accumulated depreciation $83,000
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000
Notes payable, due 2031 121,000
Common stock 210,000
Retained earnings 67,700
Totals $ 591,900 $ 591,900
b) The balance sheet is a summary of the financial position or assets, liabilities, and equity of Strong Corporation as at December 31, 2021.
