Question

Balance Sheet:  

The following is the ending balances of accounts at June 30, 2017 for WorkBee Company. Account Title Debits Credits Cash 148,000 Accounts receivable 280,000 Prepaid expenses 35,000 Land 72,000 Buildings 320,000 Accumulated depreciation—buildings 160,000 Investments 265,000 Salaries Payable 120,000 Accounts payable 173,000 Deferred Revenue 45,000 Notes payable 100,000 Mortgage payable 250,000 Common stock 100,000 Retained earnings 172,000 Totals 1,120,000 1,120,000 Additional Information: 1. The accounts receivable account consists of the following: a. Amounts owed by customers $225,000 b. Allowance for uncollectible accounts—trade customers (15,000) c. Nontrade note receivable (due in three years) 65,000 d. Interest receivable on note (due in four months) 5,000 ??Total $280,000 2. The notes payable account consists of two notes of $50,000 each. One note is due on September 30, 2017, and the other is due on November 30, 2018. 3. The mortgage payable is payable in semiannual installments of $5,000 each plus interest. The next payment is due on October 31, 2017. Interest has been properly accrued and is included in accrued expenses. 4. Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares have been issued and are outstanding. 5.The land account includes $50,000 representing the cost of the land on which the company's office building resides. The remaining $25,000 is the cost of land that the company is holding for investment purposes. 6.Deferred revenue will be recognized as revenue equally over the next two fiscal years. 7.The note payable is due in annual installments of $1,000 each. 8.Investments include $65,000 in Treasury bills purchased on November 30, 2016. The bills mature on January 30, 2018. The remaining $200,000 includes investments in marketable equity securities that the company intends to sell in the next year. 9.Prepaid expenses include $12,000 paid on December 31, 2016, for a two-year insurance plan on the assets. 10.Cash includes a $20,000 amount for compensating balance at the bank, and $50,000 cash put aside for sinking fund in support of a planned future bond issuance. Required: Prepare a well classified balance sheet for the WorkBee Company at June 30, 2017.

Answer 1

Classified Balance sheet of Work bee Company at june 30, 2017 is under

WorkBee Company
As of June 30, 2017
Assets		Amount ($)
Current Assets
Cash
Cash in hand		78,000
Cash at bank		20,000
Sinking Fund investment		50,000
Accounts Receivable- Net of bad debt		2,10,000
Inventory
Investments		2,00,000
Prepaid Expenses		23,000
Land- Current Investment		25,000
Interest Receivable		5,000
Total Current Assets		6,11,000
Fixed Assets
Building		3,20,000
Land		47,000
Leasehold Improvements
Accumulated Depreciation		-1,60,000
Total Fixed Assets		2,07,000
Investment		65,000
Non Current Assets
Prepaid Insurance		12,000
Notes Receivable - Non current		65,000
Total Non Current Assets		1,42,000
Total Assets:		9,60,000
Liabilities		Amount
Current Liabilities
Account s Payable		1,73,000
Salary Payable		1,20,000
Deferred Revenue		45,000
Notes Payable -Current Portion		62,000
Mortgages payable -Current Portion		10,000
Total Current Liabilities		4,10,000
Long-term Liabilities
Mortgages payable		2,40,000
Notes payable		38,000
Total Long-term Liabilities		2,78,000
Total Liabilities		6,88,000
Owner's Equity
Common Stock		1,00,000
Additional Paid-in Capital
Owner's Equity		1,00,000
Retained Earnings		1,72,000
Total Owner's Equity		2,72,000
Total Liabilities and Owner's Equity		9,60,000