Balance Sheet At December 31, 2021 Assets 76,000 134,000 73,000 138,000 Cash Accounts receivable Inventory Machinery (net) Franchise (net) 48,000 $ 469,000 Total assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Notes payable Bonds payable 86,000 23,000 91,000 128,000 141,000 $ 469,000 Shareholders' equity Total liabilities and shareholders' equity Additional Information: 1. Cash includes a $38,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $226,000. 3. Accounts receivable includes a $38,000 notes receivable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $23,000. Principal and interest are both due on February 1, 2022. 5. The company began operations in 2016. Net income less dividends since inception of the company totals $53,000. 6. 68,000 shares of no par common stock were issued in 2016. 100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and accou balances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be indicatod by a minus sian
Balance Sheet At December 31, 2021 Assets 76,000 134,000 73,000 138,000 Cash Accounts receivable Inventory Machinery (net) Franchise (net) 48,000 $ 469,000 Total assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Notes payable Bonds payable 86,000 23,000 91,000 128,000 141,000 $ 469,000 Shareholders' equity Total liabilities and shareholders' equity Additional Information: 1. Cash includes a $38,000 restricted amount to be used for repayment of the bonds payable in 2025. 2. The cost of the machinery is $226,000. 3. Accounts receivable includes a $38,000 notes receivable from a customer due in 2024. 4. The notes payable balance includes accrued interest of $23,000. Principal and interest are both due on February 1, 2022. 5. The company began operations in 2016. Net income less dividends since inception of the company totals $53,000. 6. 68,000 shares of no par common stock were issued in 2016. 100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and accou balances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be indicatod by a minus sian
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4
Balance Sheet
At December 31, 2021
Assets
Cash
Accounts receivable
Inventory
Machinery (net)
Franchise (net)
76,000
134,000
73,000
138,000
48,000
Total assets
$ 469,000
Liabilities and Shareholders' Equity
Вook
Accounts payable
86,000
Allowance for uncollectible accounts
23,000
91,000
Hint
Notes payable
Bonds payable
Shareholders' equity
Print
128,000
141,000
erences
Total liabilities and shareholders' equity
$ 469,000
Additional Information:
1. Cash includes a $38,000 restricted amount to be used for repayment of the bonds payable in 2025.
2. The cost of the machinery is $226,000.
3. Accounts receivable includes a $38,000 notes receivable from a customer due in 2024.
4. The notes payable balance includes accrued interest of $23,000. Principal and interest are both due on February 1, 2022.
5. The company began operations in 2016. Net income less dividends since inception of the company totals $53,000.
6. 68,000 shares of no par common stock were issued in 2016. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and account
balances. The cost of machinery and its accumulated depreciation are shown separately. (Amounts to be deducted should be
indicated by a minus sign.)
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