### Creating a Classified Balance SheetThis template is designed to help organize and present a company's financial position as of January 31, Year 1. A classified balance sheet provides detailed information about a company's assets, liabilities, and stockholders' equity. Below is the structure and explanation of such a balance sheet:#### Assets- **Current Assets**: These are assets that are expected to be converted into cash, sold, or consumed within one year. The format suggests entering asset accounts by order of liquidity.- **Less: Allowance for Uncollectible Accounts**: This is a contra-asset account that represents the estimated amount of accounts receivable that may not be collected. In this template, the value is noted as 0.- **Total Current Assets**: Sum of all current assets after deducting allowances for uncollectible accounts. Here it is shown as 0.- Additional rows for non-current assets, if any, can be added below the current assets.#### Liabilities- **Total Current Liabilities**: These are obligations the company expects to settle within one year, listed in their order of maturity.- **Total Liabilities**: This is the sum of current and any long-term liabilities.#### Stockholders' Equity- Includes the capital provided by investors and cumulative retained earnings.- **Total Stockholders' Equity**: Total of all equity accounts.- The template sets a combined total of liabilities and stockholders' equity in relation to total assets, which ensures the balance sheet accounts are balanced.### Balancing the Sheet- **Total Assets** are expected to equal the sum of **Total Liabilities and Stockholders’ Equity**, ensuring the accounting equation (Assets = Liabilities + Equity) holds true.Remember, amounts to be deducted in the balance sheet should be indicated with a minus sign (-). This sheet should be customized with actual financial data to accurately reflect the fiscal status of a company. [The following information applies to the questions displayed below.]**On January 1, Year 1, the general ledger of a company includes the following account balances:**| Accounts | Debit | Credit ||----------------------------------------|-------------|-------------|| Cash | $25,600 | || Accounts Receivable | 47,200 | || Allowance for Uncollectible Accounts | | $4,700 || Inventory | 20,500 | || Land | 51,000 | || Equipment | 17,500 | || Accumulated Depreciation | | 2,000 || Accounts Payable | | 29,000 || Notes Payable (6%, due April 1, Year 2)| | 55,000 || Common Stock | | 40,000 || Retained Earnings | | 31,100 || **Totals** | **$161,800**| **$161,800**|**During January Year 1, the following transactions occur:**- **January 2:** Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date.- **January 6:** Purchase additional inventory on account, $152,000.- **January 15:** The company sales for the first half of the month total $140,000. All of these sales are on account. The cost of the units sold is $76,300.- **January 23:** Receive $125,000 from customers on accounts receivable.- **January 25:** Pay $95,000 to inventory suppliers on accounts payable.- **January 28:** Write off accounts receivable as uncollectible, $5,300.- **January 30:** The company sales for the second half of the month total $148,000. Sales include $10,000 for cash and $138,000 on account. The cost of the units sold is $82,000.- **January 31:** Pay cash for monthly salaries, $52,500.

A statement that reports the equities, liabilities and assets of a company is termed as balance…

Answered: On January 1, Year 1, the general…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
American Laser, Inc., reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation. Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings. Cash Common Stock, 10,000 shares of $1 part Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Requirement View transaction list General Journal
American Laser, Inc., reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation. Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings. Cash Common Stock, 10,000 shares of $1 part Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Requirement View transaction list General Journal
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:Accounts Debit CreditCash $ 21,900Accounts Receivable 36,500Allowance for Uncollectible Accounts $ 3,100Inventory 30,000Land 61,600Accounts Payable 32,400Notes Payable (8%, due in 3 years) 30,000Common Stock 56,000Retained Earnings 28,500Totals $150,000 $150,000The $30,000 beginning balance of inventory consists of 300 units, each costing…
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On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts $2,700 Inventory 42,000 Land 79,600 Accounts Payable 29,200 Notes Payable (8%, due in 3 years) 42,000 Common Stock 68,000 Retained Earnings 46,500 Totals $188,400 $188,400 The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ($110 each). January 8 Purchase 1,150 units for $132,250 on account ($115 each). January 12 Purchase 1,250 units for $150,000 on account ($120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO…
ĮThe following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts $ 25,600 47,200 $ 4,700 Inventory Land 20,500 51,000 17,500 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock 2,000 29,000 55,000 40,000 31,100 $161,800 $161,800 Retained Earnings Totals During January Year 1, the following transactions occur: January 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $152,000. January 15 The comapany sales for the first half of the month total $140,000. All of these sales are on account. The cost of the units sold is $76,300. January 23 Receive $125,900 from customers on accounts receivable. January 25 Pay $95,000 to inventory suppliers on…
A firm has : cash balance $23,015.00 accounts payable $163,257.00 common stock $313,299.00 retained earnings $512,159.00 inventory $212,444.00 goodwill & other assets $78,656.00 plant & equipment $711,256.00 short-term notes payable $21,115.00 accounts receivable $141,258.00 current assets $11,223.00 what is long term debt?
Sagar
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 200,000 Merchandise inventory 340,000 Prepaid expenses 8,000 Total current assets 571,000 Property and equipment, net 910,000 Total assets $ 1,481,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $240,000 Bonds payable, 8% 310,000 Total liabilities 550,000 Stockholders' equity: Common stock, $10 par value $ 160,000 Retained earnings 771,000 Total stockholders' equity 931,000 Total liabilities and stockholders' equity $ 1,481,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales $ 3,325,000 Cost of goods sold 1,067,500 Gross margin 2,257,500 Selling and administrative expenses 610,000 Net operating income 1,647,500 Interest expense 24,800 Net income before taxes 1,622,700 Income taxes (30%) 486,810 Net income $ 1,135,890 Account…
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 6,500 35,000 70,000 3,500 115,000 185,000 Total current assets Property and equipment, net Total assets $300,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 50,000 Bonds payable, 10% Total liabilities 80,000 130,000 Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity 30,000 140,000 170,000 Total liabilities and stockholders' equity $300,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $420,000 Cost of goods sold Gross margin Selling and administrative expenses 292,500 127,500 89,500 Net operating income Interest expense Net income before taxes 38.000 8,000 30,000 Income taxes (30%) 9,000 Net income $ 21,000 Account balances at the beginning of the year were: accounts…
The following items are reported on a company's balance sheet: Cash $195,100 Marketable securities 152,400 Accounts receivable (net) 121,500 Inventory 140,700 Accounts payable 469,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio

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