re a classified balance sheet for the Excell Company at June 30, 2021. (Amounts to be deducted should be indicated by a minus sign.)
re a classified balance sheet for the Excell Company at June 30, 2021. (Amounts to be deducted should be indicated by a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following is the ending balances of accounts at June 30, 2021, for Excell Company.
Account Title | Debits | Credits | ||||
Cash | $ | 83,000 | ||||
Short-term investments | 65,000 | |||||
280,000 | ||||||
Prepaid expenses (for the next 12 months) | 32,000 | |||||
Land | 75,000 | |||||
Buildings | 320,000 | |||||
$ | 160,000 | |||||
Equipment | 265,000 | |||||
Accumulated depreciation—equipment | 120,000 | |||||
Accounts payable | 173,000 | |||||
Accrued liabilities | 45,000 | |||||
Notes payable | 100,000 | |||||
Mortgage payable | 250,000 | |||||
Common stock | 100,000 | |||||
172,000 | ||||||
Totals | $ | 1,120,000 | $ | 1,120,000 | ||
Additional information:
- The short-term investments account includes $18,000 in U.S. treasury bills purchased in May. The bills mature in July, 2021.
- The accounts receivable account consists of the following:
a. | Amounts owed by customers | $ | 225,000 | |
b. | Allowance for uncollectible accounts—trade customers | (15,000 | ) | |
c. | Nontrade note receivable (due in three years) | 65,000 | ||
d. | Interest receivable on note (due in four months) | 5,000 | ||
Total | $ | 280,000 | ||
- The notes payable account consists of two notes of $50,000 each. One note is due on September 30, 2021, and the other is due on November 30, 2022.
- The mortgage payable is a loan payable to the bank in semiannual installments of $5,000 each plus interest. The next payment is due on October 31, 2021. Interest has been properly accrued and is included in accrued expenses.
- Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares have been issued and are outstanding.
- The land account includes $50,000 representing the cost of the land on which the company’s office building resides. The remaining $25,000 is the cost of land that the company is holding for investment purposes.
Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2021. (Amounts to be deducted should be indicated by a minus sign.)
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