Question

The following is the ending balances of accounts at June 30, 2021, for Excell Company.

Account Title Debits Credits
Cash $ 87,000
Short-term investments 69,000
Accounts receivable (net) 284,000
Prepaid expenses (for the next 12 months) 36,000
Land 79,000
Buildings 324,000
Accumulated depreciation—buildings $ 162,000
Equipment 267,000
Accumulated depreciation—equipment 122,000
Accounts payable 175,000
Accrued liabilities 47,000
Notes payable 104,000
Mortgage payable 230,000
Common stock 120,000
Retained earnings 186,000
Totals $ 1,146,000 $ 1,146,000
Additional information:
The short-term investments account includes $20,000 in U.S. treasury bills purchased in May. The bills mature in July, 2021.
The accounts receivable account consists of the following:
a. Amounts owed by customers $ 227,000
b. Allowance for uncollectible accounts—trade customers (16,000 )
c. Nontrade notes receivable (due in three years) 67,000
d. Interest receivable on notes (due in four months) 6,000
Total $ 284,000
The notes payable account consists of two notes of $52,000 each. One note is due on September 30, 2021, and the other is due on November 30, 2022.
The mortgage payable is a loan payable to the bank in semiannual installments of $4,600 each plus interest. The next payment is due on October 31, 2021. Interest has been properly accrued and is included in accrued expenses.
Nine hundred thousand shares of no par common stock are authorized, of which 240,000 shares have been issued and are outstanding.
The land account includes $52,000 representing the cost of the land on which the company's office building resides. The remaining $27,000 is the cost of land that the company is holding for investment purposes.
Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

See below

Step-by-step explanation:

Classified Balance sheet for excel company as at June 30, 2021.

Cash

$87,000

Short term investment

$69,000

*Accounts receivables

$217,000

Prepaid expenses

$36,000

Total current

$409,000

Non current asset

Land

$79,000

Equipment(net)

($267,000 - $122,000)

$145,000

Buildings(net)

($234,000 - $162,000)

$72,000

Total non current asset

$296,000

Total assets $409,000 + $296,000 = $705,000

Liabilities

Accounts payable

$175,000

Accrued liabilities

$47,000

Notes payable

$52,000

Mortgage payable

$55,200

Total liabilities

$329,200

Longterm liabilities

*** Notes payable

$52,000

*** Mortgage

$174,800

Total longterm

$226,800

Total liabilities $329,200 + $226,800 = $556,000

Equity

Common stock

$120,000

Retained earnings

$186,000

Total equity

$306,000

Total liabilities and equities $556,000 + $306,000 = $862,000

Calculation for *AR

$284,000 - $67,000 non current = $217,000

** note payable of $104,000 less $52,000

Current mortgage of $4,600 × 12(Interest will be accrued over time)

The non current will be the difference

$230,000 - $55,200 = $174,800