Question

The following is a December 31, 2018, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits Credits Cash 55,000 Accounts receivable 39,000 Inventories 45,000 Prepaid insurance 15,000 Equipment 100,000 Accumulated depreciation—equipment 34,000 Patent, net 40,000 Accounts payable 12,000 Interest payable 2,000 Note payable (due in 10, equal annual installments) 100,000 Common stock 70,000 Retained earnings 76,000 Totals 294,000 294,000

Prepare a classified balance sheet for Culver City Lighting, Inc. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Culver City Lighting, Inc.
CLASSIFIED BALANCE SHEET
AS OF DECEMBER 31, 2018
	$	$
Assets
Current Assets
Cash	55,000.00
Accounts receivable	39,000.00
Inventories	45,000.00
Prepaid insurance	15,000.00
Total current assets		154,000.00
Property, plant and equipment
Equipment	100,000.00
Accumulated depreciation	(34,000.00)
Net property, plant, and equipment		66,000.00
Intangible assets
Patent		40,000.00
Total assets		260,000.00
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	12,000.00
Interest Payable	2,000.00
Current maturities of long-term debt (100,000/10)	10,000.00
Total current liabilities		24,000.00
Long-term liabilities
Notes payable (100,000-10,000)		90,000.00
Total liabilities		114,000.00
Stockholders’ equity
Common stock	70,000.00
Retained earnings	76,000.00
Total stockholders’ equity		146,000.00
Total liabilities and stockholders’ equity		260,000.00