Use the following information to complete the subtotals for current assets, long-term investments, property plant and...

Use the following information to complete the subtotals for current assets, long-term investments, property plant and equipment, other assets, current liabilities and long-term liabilities.

The following represents a December 31, 2016, post-closing trial balance for Excell Company.

Account Title	Debits	Credits	CA	LTI	PPE	OA	CL	LTL
Cash	$ 83,000
Accounts Receivable (net of Allowance)	$280,000
Prepaid Expenses	$ 32,000
Investments	$ 65,000
Land	$175,000
Buildings (net)	$160,000
Equipment (net)	$145,000
Accounts payable		$ 73,000
Accrued expenses payable		$ 45,000
Unearned Revenue		$150,000
Notes payable		$300,000
Common Stock		$200,000
Retained Earnings		$172,000

Additional Information:

The cash account includes $22,000 set aside in a legally restricted fund to pay bonds payable that mature in 2024 and $15,000 cash surrender value of a life insurance policy on the company's CEO.

2. The accounts receivable balance consists of the following:
      a. Amounts owed by customers with debit balances                             $ 217,100
      b. Allowance for uncollectible accounts - trade customers                         (9,400)
      d. Non-trade note receivable due in three equal payments on

June 25 over the next 3 years                             64,500
      e. Interest receivable on note due in nine months                                      7,800
                                    Total                                                                               $ 280,000

3. The prepaid expenses include $18,000 that will be consumed during 2017 and $14,000 that will be consumed during 2018.

4. The investments account is classified as Available for Sale Securities and includes an investment of $25,000 in bonds that mature July 1, 2017. Of the remaining investments balance, management intends to hold for at least the next three years. All investments in the portfolio have already been marked-to-market and are reported at Fair Value.

5. The land account includes land which cost $75,000 that the company purchased for speculative purposes and is currently held for sale. The remaining $100,000 is the cost of land on which the company's office building resides. The equipment account includes idle machinery with a book value of $45,000.

6. The unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for five years and will be earned evenly over each of the years beginning January 1, 2017.

7. The notes payable account consists of the following:

a $50,000 note due in six months

a $100,000 bond due in eight year

a $150,000 note due in six annual installments of $25,000 each, with the next installment due Nov. 1, 2017.
*Interest on all notes has been properly accrued and is included in accrued expenses.

Expert Solution


Account Title	Debits	Credits	CA	LTI	PPE	OA	CL	LTL	Calculations & Explanations
Cash	83000		46000			37000			Legally restricted fund and cash surrender value is classifed as OA and rest as CA
Accounts Receivable (net of Allowance)	280000		237000			43000			Long term Notes Receivable due after 2017 is classified as OA and rest as Ca
Prepaid Expenses	32000		18000			14000			Prepaid expenses due in 2018 is classified as OA and rest as CA
Investments	65000		25000	40000					Investment in bonds that matures in 2017 is classfied as CA and rest as LTI
Land	175000		75000		100000				Land held for the purpose of speculation is classified as CA and rest as PPE
Buildings (net)	160000				160000				Building is classified as PPE
Equipment (net)	145000				145000				Equipment is classified as PPE
Accounts payable		73000					73000		Accounts Payable is classified as CL
Accrued expenses payable		45000					45000		Accrued expenses payable is classified as CL
Unearned Revenue		150000					30000	120000	Unearned revenue for 2017 is classified as CL and rest as LTL
Notes payable		300000					75000	225000	Note due in six months and first installment of Note of $150000 is classified as CL and rest as LTL
Common Stock		200000							No classification head is given
Retained Earnings		172000							No classification head is given
Total	940000	940000

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