Question

Consider the following account balances of Evan McGruder, Inc., as of December 31, Year 3:

Accounts Payable $ 112,500
Retained Earnings 56,200
Equipment 423,100
Notes Payable, due Year 5 344,700
Common Stock 207,500
Accounts Receivable 204,000
Income Tax Payable 4,050
Cash 97,850
Required:
Prepare a classified balance sheet at June 30, Year 3.

Answer 1

A T-account balance sheet for a bank lists assets on one side and liabilities and equity on the other. With reserves of $50, government bonds worth $70, and loans of $500, the total assets of the bank are $620. Deducting the deposits of $400 from total assets gives a net worth or equity of $220.

Step-by-step explanation:

To prepare a T-account balance sheet for a bank, we need to list assets on the left side and liabilities (plus equity) on the right side of the T-account. From the provided information, we can organize the bank's financials as follows:

Assets

Reserves: $50

Government Bonds: $70

Loans: $500

Liabilities

Deposits: $400

The equity of the bank is the difference between total assets and total liabilities. To calculate this, first, add up all the assets:

Reserves + Government Bonds + Loans = $50 + $70 + $500 = $620 in total assets.

Then, subtract the total liabilities from the total assets to get the equity:

Total Assets - Deposits = $620 - $400 = $220 in equity (net worth).

The T-account balance sheet would visually represent these numbers, listing the assets on one side and the liabilities and equity on the other side, ensuring they balance out.

Answer 2

Step-by-step explanation:

In the classified balance sheet, we summarize the asset and liabilities into various types

Like assets are divided into fixed assets, current assets, and intangible assets.

Likewise, liabilities are also divided into current liabilities, long term liabilities

In every balance sheet, the accounting equation is used that means

Total assets = Total liabilities + Shareholder equity

The preparation of the classified balance sheet for Evan McGruder, Inc. on June 30, Year 3 is presented in the spreadsheet. Kindly find the attachment below: