Question

3)

BOOER COMPANY

Worksheet (partial)

For the Year Ended December 31, 2018

	Income Statement				Balance Sheet
Accounts	Debit		Credit		Debit	Credit
Cash					8,000
Accounts Receivable					26,000
Supplies					4,500
Prepaid Insurance					7,000
Equipment					41,000
Accumulated Depreciation—Equipment						4,800
Patents					7,500
Accounts Payable						22,200
Notes Payable (due 2020)						20,000
Owner’s Capital						47,000
Totals					94,000	94,000

Instructions

Prepare a classified balance sheet for Booer Company.

Answer 1

• All working forms part of the answer
• Balance Sheet, as asked:

Balance Sheet
For the year ended 31 Dec, 2018
ASSETS
Current Assets:
Cash	$             8,000.00
Accounts Receivable	$          26,000.00
Supplies	$             4,500.00
Prepaid Insurance	$             7,000.00
Total Current Assets		$            45,500.00
Property, Plant & Equipment:
Equipment	$          41,000.00
Accumulated Depreciation—Equipment	$          (4,800.00)
Total Plant Property & equipment		$            36,200.00
Intangible Assets:
Patents		$              7,500.00
Total Assets		$            89,200.00
LIABILITIES
Current Liabilities:
Accounts Payable		$            22,200.00
Long Term Liabilities:
Notes Payable (due 2020)		$            20,000.00
Total Liabilities		$            42,200.00
OWNER's EQUITY
Owner’s Capital		$            47,000.00
Total Liabilities & Owner's Equity		$            89,200.00