Question

Prepare a 2017 balance sheet for Jarrow Corp. based on the following information:

cash = $142,000;
patents and copyrights = $630,000;
accounts payable = $219,500;
accounts receivable = $162,500;
tangible net fixed assets = $1,655,000;
inventory = $300,500;
notes payable = $115,000;
accumulated retained earnings = $1,248,000;
long-term debt = $860,000.
(Do not round intermediate calculations. Be sure to list the accounts in order of their liquidity.)

Answer 1

Answer and Explanation:

The preparation of the balance sheet is presented below:

Assets Liabilities & Equity

Cash $142,000 Account payable $219,500

Account receivable $162,500 Note payable $115,000

Inventory $300,500 Long term debt $860,000

Tangible net fixed assets $1,655,000 Common stock $447,500

(Balancing figure)

Patents & copyrights $630,000 Acc retained earnings $1,248,000

Total assets $2,890,000 Total liabilities & Equity $2,890,000