Surf, Inc. Post-Closing Trial Balance January 1, 2021 (in thousands) DR CR Cash and cash equivalents $ 20,289 Short-term marketable securities 53,892 Accounts receivable, allowance of $65 and $48, respectively 21,568 Inventories 37,223 Vendor and nontrade receivables 28,568
Surf, Inc. Post-Closing Trial Balance January 1, 2021 (in thousands) DR CR Cash and cash equivalents $ 20,289 Short-term marketable securities 53,892 Accounts receivable, allowance of $65 and $48, respectively 21,568 Inventories 37,223 Vendor and nontrade receivables 28,568
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:**Surf, Inc.**
**Post-Closing Trial Balance**
*January 1, 2021*
*(in thousands)*
| Description | DR (Debit) | CR (Credit) |
|--------------------------------------------------|------------|-------------|
| Cash and cash equivalents | $20,289 | |
| Short-term marketable securities | $53,892 | |
| Accounts receivable, allowance of $65 and $48 | $21,568 | |
| Inventories | $37,223 | |
| Vendor and nontrade receivables | $28,568 | |
| Other current assets | $15,473 | |
| Long-term marketable securities | $87,562 | |
| Land | $26,589 | |
| Buildings | $97,523 | |
| Accumulated depreciation, building | | $45,263 |
| Equipment | $58,963 | |
| Accumulated depreciation, equipment | | $27,532 |
| Leasehold improvements | $99,652 | |
| Accumulated amortization, leaseholds | | $56,325 |
| Trademark | $58,623 | |
| Goodwill | $67,825 | |
| Other noncurrent assets | $10,236 | |
| Accounts payable | | $27,862 |
| Salaries and wages payable | | $12,586 |
| Long-term notes payable | | $89,542 |
| Retained earnings | | $264,922 |
| Common stock | | $159,954 |
| **Total** | **$683,986**| **$683,986**|
**Required:**
Prepare a classified balance sheet utilizing the post-closing trial balance of Surf, Inc.
---
The table represents a post-closing trial balance for Surf, Inc. as of January 1, 2021. The debits and credits are balanced at $683,986 (in thousands), indicating that all formal entries in the double-entry bookkeeping system have been made correctly. The balance includes various assets such as cash, receivables, and inventory, along with liabilities like accounts payable and equity
Transcribed Image Text:# Understanding Balance Sheets
## Balance Sheet Example (Dated 1-Jan-21)
### Assets
- **Current Assets**
- The section for current assets is currently blank and awaits data entry.
- **Total Current Assets**
- Value: 4
### Total Assets
- This section aggregates all asset data once entered.
### Liabilities and Equity
#### Current Liabilities
- **Current Liabilities**
- This section is blank and awaits data entry.
- **Total Current Liabilities**
- Placeholder for the sum of current liabilities, blank for now.
#### Long Term Liabilities
- **Total Liabilities**
- Awaiting data input, combines current and long-term liabilities once populated.
#### Equity
- **Equity**
- Section reserved for equity information, currently empty.
- **Total Equity**
- Placeholder for sum of equity-related entries.
### Total Liabilities and Equity
- This section will reflect the sum of all liabilities and equity once data is entered.
### Diagram Explanation
This sheet provides a structured format to input financial data, segregating assets, liabilities, and equity for balanced financial assessment. As data is populated, totals will help in financial analysis and decision-making.
### Note
While sections are currently blank, this layout provides a template framework common in accounting for capturing financial snapshot accurately.
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