Question

TOPIC #2 - Posted Tuesday- The properly classified Balance Sheet 1) Prepare a properly formatted Asset section of the Balance Sheet Trading securities 6,000 Accumulated depreciation on equipment and furniture 15,000 Cash 11,000 Inventory 30,000 Equipment 25,000 Patent 4,000 Investments: Equity 100,000 Prepaid expenses 2,000 Land 18,000 2) Prepare a properly formatted Asset section of the Balance Sheet Debit Credit Accumulated depreciation on equipment 24,000 Trading securities 6,000 Accumulated depreciation on furniture 15,000 Cash 11,000 Inventory 30,000 Equipment 150,000 Furniture 35,000 Patent 4,000 Allowance for Uncollectible accounts 6,000 Accounts Receivable 40,000 Prepaid expenses 2,000 Land held for future business site 18,000 Goodwill 20,000 Buildings 300,000 Accumulated depreciation on buildings 120,000

Answer 1

Solution and Explanation:

A Balance Sheet is as follows:

Assets

Current assets

Cash 11000

Trading securities 6000

Accounts receivable (net) 24000

Inventory 30000

Prepaid expense 2000

The Total current assets 73000

The Long term investment

Land held for future business site 18000

The Total investment 18000

Property,plant and equipment

Equipment 25000

Less: the Accumulated depreciation

on equipment and furniture -15000

Total property,plant and equipment 10000

Intangible assets

Patent 4000

The Total intangible assets 4000

The Total Assets 105000