These items are taken from the financial statements of Bridgeport Corp. at December 31, 2018.Buildings $ 95,220 Accounts receivable 11,340 Prepaid insurance 4,212 Cash 10,656 Equipment 74,160 Land 55,080 Office expense 522 Income tax expense 180 Depreciation expense 4,770 Interest expense 2,340 Common shares 55,800 Retained earnings (January 1, 2018) 36,000 Accumulated depreciation—building 41,040 Accounts payable 7,560 Income taxes payable 990 Bank loan payable (due July 1, 2020) 84,240 Accumulated depreciation—equipment 16,848 Interest payable 3,240 Sales 12,762 Prepare a classified statement of financial position. Assume that $ 12,240 of the bank loan payable will be paid in 2019. (List Property, plant and equipment in order of land, buildings and equipment. List Current Assets in order of liquidity.)

The question is based on the concept of Final Accounts.

Answered: These items are taken from the…

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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These items are taken from the financial statements of Bridgeport Corp. at December 31, 2018.

Buildings		$ 95,220
Accounts receivable		11,340
Prepaid insurance		4,212
Cash		10,656
Equipment		74,160
Land		55,080
Office expense		522
Income tax expense		180
Depreciation expense		4,770
Interest expense		2,340
Common shares		55,800
Retained earnings (January 1, 2018)		36,000
Accumulated depreciation—building		41,040
Accounts payable		7,560
Income taxes payable		990
Bank loan payable (due July 1, 2020)		84,240
Accumulated depreciation—equipment		16,848
Interest payable		3,240
Sales		12,762

Prepare a classified statement of financial position. Assume that $ 12,240 of the bank loan payable will be paid in 2019. (List Property, plant and equipment in order of land, buildings and equipment. List Current Assets in order of liquidity.)

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