
Prepare a classified

Explanation of Solution
Classified balance sheet: The main elements of balance sheet assets, liabilities, and
Prepare a classified balance sheet of Company M for the year ended December 31, 2016 as follows:
Company M | ||
Balance Sheet | ||
For Year Ended December 31, 2016 | ||
Assets: | Amount ($) | Amount ($) |
Current Assets: | ||
Cash (1) | 3,300 | |
| 5,000 | |
Inventory (3) | 4,200 | |
Total current assets | 12,500 | |
Property, Plant, and Equipment: | ||
Land (4) | 6,800 | |
Buildings and equipment (5) | 82,800 | |
Less: | (16,000) | |
Total property, plant, and equipment | 73,600 | |
Total Assets | 86,100 | |
Liabilities: | ||
Current Liabilities: | ||
Accounts payable (7) | 3,000 | |
Salaries payable (8) | 1,500 | |
Total current liabilities | 4,500 | |
Long-Term Liabilities: | ||
Bonds payable | 6,000 | |
Less: Discount on bonds payable (9) | (300) | |
Total long-term liabilities | 5,700 | |
Total Liabilities (a) | 10,200 | |
Shareholders’ Equity: | ||
Contributed Capital: | ||
Common stock, $10 par (10) | 16,500 | |
Additional paid-in capital (11) | 12,700 | |
Total contributed capital | 29,200 | |
Retained earnings (12) | 46,700 | |
Total Shareholders’ Equity (b) | 75,900 | |
Total Liabilities and Shareholders’ Equity | 86,100 |
Table (1)
Working note (1):
Compute the amount of cash:
Working note (2):
Compute the amount of accounts receivable:
Working note (3):
Compute the amount of inventory:
Working note (4):
Compute the value of land:
Working note (5):
Compute the value of building and equipment:
Working note (6):
Compute the amount of accumulated depreciation:
Working note (7):
Compute the amount of accounts payable:
Working note (8):
Compute the amount of salaries payable:
Working note (9):
Compute the amount of discount on bonds payable:
Working note (10):
Compute the amount of common stock:
Working note (11):
Compute the amount of additional paid-in capital:
Working note (12):
Compute the amount of retained earnings:
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Chapter 5 Solutions
Intermediate Accounting: Reporting and Analysis (Looseleaf)
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