Question

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation.

Account Title	Debits	Credits
Cash	$40,000
Accounts receivable	34,000
Inventories	75,000
Prepaid rent for next 8 months	16,000
Marketable securities (short term)	10,000
Machinery	1,45,000
Accumulated depreciation - machinery		11,000
Patent (net of amortization)	83,000
accounts payable		8,000
wages payable		4,000
Taxes payable		32,000
Bonds payable (due in 10 Years)		2,00,000
Commons stock		1,00,000
Retained Earnings		48,000
Totals	403,000	403,000

Prepare a classified balance sheet for Jackson Corporation at December 31,2018

 

Answer 1

Balance Sheet : A balance sheet summarises a company's assets, liabilities, and shareholder equity as of a specific date. It is also known as the business's financial status statement

Jackson Corporation

Balance sheet as on 

December 31,2018

Assets	Amount$	Amount$
Current assets :
Cash		40,000
Marketable securities		10,000
Accounts Receivables		34,000
Inventories		75,000
Prepaid rent		16,000
Total current assets		1,75,000
Property,plant & equipment :
Machinery	1,45,000
Less : Accumulated Depreciation	11,000
Net property,plant & equipment		1,34,000
Intangible assets :
Patent		83,000
Total assets		3,92,000
Liabilities & Shareholder's Equity :
Current liabilities :
Accounts payable		8,000
Wages payable		4,000
Taxes payable		32,000
Total current liabilities		44,000
Long term liabilities :
Bonds payable		2,00,000
Total liabilities		2,44,000
Shareholder's Equity :
Common Stock	1,00,000
Retained earnings	48,000
Total shareholder's equity		1,48,000
Total liabilties & Shareholder's equity		3,92,000

Therefore, the balance sheet agrees with the assests and liabilities of $3,92,000