Question

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

Account Title		Debits			Credits
Cash	$	52,000
Accounts receivable		46,000
Inventories		87,000
Prepaid rent for the next 8 months		28,000
Marketable securities (short term)		22,000
Machinery		205,000
Accumulated depreciation—machinery				$	23,000
Patent (net of amortization)		91,000
Accounts payable					14,000
Wages payable					10,000
Taxes payable					44,000
Bonds payable (due in 10 years)					260,000
Common stock					150,000
Retained earnings					30,000
Totals	$	531,000		$	531,000

Required:
Prepare a classified balance sheet for Jackson Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

JACKSON CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash		$52,000
Marketable securities		22,000
Accounts receivable		46,000
Inventories		87,000
Prepaid rent		28,000
Total current assets		235,000
Property, plant, and equipment:
Machinery	$205,000
Less: Accumulated depreciation	-23,000
Net property, plant, and equipment		182,000
Intangible assets:
Patent		91,000
Total assets		$508,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable		$14,000
Wages payable		10,000
Taxes payable		44,000
Total current liabilities		68,000
Long-term liabilities:
Bonds payable		260,000
Shareholders’ equity:
Common stock	$150,000
Retained earnings	30,000
Total shareholders’ equity		180,000
Total liabilities and shareholders’ equity		$508,000