Question

Selected financial information for Sunland as of December 31, 2017, follows:

Accounts payable		$208,000		Land		$106,000
Accounts receivable		190,000		Licences		59,000
Accumulated depreciation—building		79,000		Long-term equity investments		45,000
Building		256,000		Mortgage payable		219,000
Cash		15,500		Notes payable		54,000
Goodwill		36,000		Prepaid expenses		6,800
Interest payable		16,000		Salaries payable		27,500
J. Chrowder, capital		95,300		Supplies		11,000
				Unearned revenue		26,500

Additional information:

1.		All accounts have normal balances.
2.		$16,000 of the mortgage payable will be paid before December 31, 2018.
3.		The notes payable are payable on May 17, 2018.

1. Prepare a classified balance sheet.

Answer 1

SUNLAND
BALANCE SHEET
As of December 31, 2017
	$	$	$
Assets
Current Assets
Cash		15,500.00
Accounts receivable		190,000.00
Prepaid expenses		6,800.00
Supplies		11,000.00
Total current assets			223,300.00
Long-term equity investments			45,000.00
Property, plant and equipment
Land		106,000.00
Building	256,000.00
Less: Accumulated depreciation	(79,000.00)	177,000.00
Total property, plant, and equipment			283,000.00
Intangible assets:
Goodwill		36,000.00
Licences		59,000.00
Total Intangible assets			95,000.00
Total assets			646,300.00
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		208,000.00
Interest payable		16,000.00
Notes payable		54,000.00
Mortgage payable		16,000.00
Salaries payable		27,500.00
Unearned revenue		26,500.00
Total liabilities			348,000.00
Long-term liabilities:
Mortgage payable (219,000 -16,000)			203,000.00
Stockholders’ equity
J. Chrowder, capital			95,300.00
Total liabilities and stockholders’ equity			646,300.00