Question

Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable $ 6,800 Retained earnings $ 58,000 Buildings 67,800 Notes payable (due in 9 years) 46,000 Prepaid rent 7,800 Office supplies 3,600 Merchandise inventory 15,600 Land 38,000 Accounts payable 18,000 Accumulated depreciation-Building 6,600 Prepaid insurance 4,600 Mortgages payable (due in 5 years) 28,000 Accounts receivable 12,000 Cash 32,000 Common stock 18,000 Required: Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Adams Co.

Balance Sheet as of December 31.

Assets

Current Assets

Cash $32,000

Accounts Receivable $12,000

Merchandise Inventory $15,600

Office Supplies $3,600

Prepaid Rent $7,800

Prepaid Insurance $4,600

Total Current Assets $ 75,600

Property, Plant and Equipment

Land $38,000

Building $67,800

Accumulated Depreciation $(6,600) $61,200

(Buildings)

Total Assets $ 174,800

Liabilities

Current Liabilities

Accounts Payables $18,000

Salaries Payable $6,800

Total Current Liabilities $24,800

Long term Liabilities

Notes Payable $46,000

Mortgage Payable $28,000

Total Long term Liabilities $74,000

Total Liabilities $98,800

Stockholder's Equity

Common Stock $18,000

Retained Earnings $58,000

Total Stockholder's Equity $76,000

Total Liabilities & Stockholder's Equity $174,800