Chapter 17, Problem E17.24E

To determine

Concept Introduction

Balance sheet: Balance sheet is a financial statement that shows the types of assets, liabilities, and owner’s equity and their respective amounts as on a specific date. It reports on the entity’s financial position as of a specific date. The amount of total assets is equal to the amount of total liabilities & owner’s equity as shown in the entity’s balance sheet as on a specific date.

Condensed balance sheet: A condensed balance sheet is a balance sheet that contains information in a few lines. It is presented in a highly summarized format. For example: the assets section contains current assets and fixed assets and the liabilities section contains current liabilities and long-term liabilities.

To Prepare: Jim’s condensed balance sheet as of December 31, 2016.