Question

Presented below are a number of balance sheet items for Tamarisk, Inc. for the current year, 2020.

Goodwill $27,340 Accumulated Depreciation-Equipment $292,490
Payroll Taxes Payable 179,931 Inventory 242,140
Bonds payable 302,340 Rent payable (short-term) 47,340
Discount on bonds
payable 15,490 Income taxes payable 100,702
Cash 362,340 Rent payable (long-term) 482,340
Land 482,340 Common stock, $1 par value 202,340
Notes receivable 448,040 Preferred stock, $10 par value 152,340
Notes payable (to
banks) 267,340 Prepaid expenses 90,260
Accounts payable 492,340 Equipment 1,472,340
Retained earnings ? Equity investments (trading) 123,330
Income taxes receivable 99,960 Accumulated Depreciation-Buildings 270,446
Notes payable
(long-term) 1,602,330 Buildings 1,642,330
Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.

Answer 1

Tamarisk, Inc.

Classified Balance Sheet

As of December 31, 2020:

ASSETS:

Current Assets:

Cash $362,340

Equity investments (trading) 123,330

Notes receivable 448,040

Income taxes receivable 99,960

Inventory 242,140

Prepaid expenses 90,260

Total current assets $1,366,070

Equipment 1,472,340

Accumulated

Depreciation (292,490) 1,179,850

Buildings 1,642,330

Accumulated

Depreciation (270,446 ) 1,371,884

Land 482,340

Goodwill 27,340

Total long-term assets $3,061,414

Total assets $4,427,484

LIABILITIES

Current Liabilities

Accounts payable 492,340

Payroll Taxes Payable 179,931

Income taxes payable 100,702

Rent payable (short-term) 47,340

Discount on bonds payable 15,490

Notes payable (to banks) 267,340

Total current liabilities $1,103,143

Bonds payable 302,340

Rent payable (long-term) 482,340

Notes payable (long-term) 1,602,330

Total long-term liabilities $2,387,010

Total Liabilities $3,490,153

EQUITY

Common stock, 400,000 shares authorized

Issued, 202,340 shares at

$1 par value 202,340

Preferred stock, 200,000 shares authorized

Issued, 15,234 shares at

$10 par value 152,340

Retained earnings 582,651

Total Equity $937,331

Total liabilities & Stockholders' equity $4,427,484

Step-by-step explanation:

a) Data:

Account Title Debit Credit

Cash $362,340

Equity investments (trading) 123,330

Notes receivable 448,040

Income taxes receivable 99,960

Inventory 242,140

Prepaid expenses 90,260

Equipment 1,472,340

Accumulated Depreciation-Equipment $292,490

Buildings 1,642,330

Accumulated Depreciation-Buildings 270,446

Land 482,340

Goodwill 27,340

Accounts payable 492,340

Payroll Taxes Payable 179,931

Income taxes payable 100,702

Rent payable (short-term) 47,340

Discount on bonds payable 15,490

Notes payable (to banks) 267,340

Bonds payable 302,340

Rent payable (long-term) 482,340

Notes payable (long-term) 1,602,330

Common stock, $1 par value 202,340

Preferred stock, $10 par value 152,340

Retained earnings 582,651

Total $4,990,420 $4,990,420