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The accountant at Monsters, Inc. unexpectedly quit on December 31, 2017, leaving behind everything. You managed...

The accountant at Monsters, Inc. unexpectedly quit on December 31, 2017, leaving behind everything. You managed to find the following information:

Accum. Depr. – Building            $15,000                        Interest Payable                                           600

Accum. Depr. – Equipment          10,000                        Inventory                                              $102,000

Accounts Receivable                     2,000                        Land                                                       137,320

Allowance for Bad Debt                    140                         Notes Payable (due 7/1/16)                     14,400

Bonds Payable (due 12/31/20)     78,000                        Prepaid Advertising                                   5,000

Buildings                                    80,400                        Retained Earnings                                             ?

Cash                                           30,000                        Salaries Payable                                           900

Common Stock                           60,000                        Taxes Payable                                           3,000

Equipment                                  40,000

1. Prepare the firm’s classified balance sheet for 2017.

Solutions

Expert Solution

Balance sheet
Liabilities Current assets
Interest payable 600 Cash 30000
Notes payable (due 7/1/16) 14400 Accounts receivable 2000
Salaries payable 900 Less: allowance for bad debts -140
Taxes payable 3000 1860
Bonds payable (due 12/31/20) 78000 Prepaid advertising 5000
Total liabilities 96900 Inventory 102000
Total current assets (A) 138860
Equity
Common stock 60000
Retained earings (balancing figure) 214680 Fixed assets
371580-60000-96900 Land 137320
Building 80400
Less:accumulated depreciation of building -15000
65400
Equipment 40000
Less:accumulated depreciation of equipment -10000
30000
Total fixed assets (B) 232720
Total liabilitie and equity 371580 Total assets (A+B) 371580

jeff jeffy answered 1 year ago
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