Question

The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022. Land $197,900 Accounts receivable 22,000 Supplies 10,200 Cash 12,050 Equipment 82,100 Buildings 261,200 Land improvements 45,900 Notes receivable (due in 2023) 6,200 Accumulated depreciation—land improvements 12,700 Common stock 80,000 Retained earnings (December 31, 2022) 495,000 Accumulated depreciation—buildings 33,600 Accounts payable 9,800 Mortgage payable 91,900 Accumulated depreciation—equipment 18,950 Interest payable 3,400 Income taxes payable 15,500 Patents 46,700 Investments in stock (long-term) 71,300 Debt investments (short-term) 5,300

Prepare a classified balance sheet. Assume that $9,300 of the mortgage payable will be paid in 2023. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings, Equipment and Land Improvements.)

Answer 1

IVANHOE COMPANY
BALANCE SHEET AS AT 31st DECEMBER 2022
ASSETS		$	$	LIABILITIES & EQUITY		$	$
Current Assets:				Current Liabilities:
Cash			12,050	Accounts Payable			9,800
Accounts Receivable			22,000	Interest Payable			3,400
Notes Receivable			6,200	Income Tax Payable			15,500
Supplies			10,200	Mortgage Payable			9,300
Total Current Assets	1		50,450	Total Current Liabilities	1		38,000
Short Term Debt Investments	2		5,300
				Long-term Liabilities
Non-Current Assets:				Mortgage Payable	2		82,600
Property Plant & Equipment
Land		1,97,900		TOTAL LIABILITIES	3=(1+2)		1,20,600
Less: Acc. Dep.		-	1,97,900
Buildings		2,61,200
Less: Acc. Dep.		33,600	2,27,600
Equipment		82,100		STOCK HOLDERS' EQUITY
Less: Acc. Dep.		18,950	63,150
Land Improvements		45,900		Common Stock			80,000
Less: Acc. Dep.		12,700	33,200	Retained Earnings			4,95,000
Total Property Plant & Equipment	3		5,21,850	Total Stock Holders' Equity	4		5,75,000
Intangible Assets
Patents	4		46,700
Long Term Stock Investments	5		71,300
TOTAL ASSETS	(1 to 5)		6,95,600	TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	3+4		6,95,600