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.

Solutions

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

ekkarill92 answered 9 months ago

Next > < Previous

Related Solutions

Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term...

Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year 230,000 160,000 Net income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) Round dollar values to two decimal places and other final answers to one decimal place. a. Return on total assets % b. Return on stockholders' equity...

Typical balance sheet classifications are as follows. a. Current Assets b. Long-term Investments ...

Typical balance sheet classifications are as follows. a. Current Assets b. Long-term Investments c. Property Plant & Equipment d. Intangible Assets e. Other Assets f. Current Liabilities g. Long-Term Liabilities h. Capital Stock i. Additional Paid-In Capital j. Retained Earnings k. Notes to Financial Statements Indicate by use of the above letters how each of the following items would be classified on a balance sheet prepared at December 31,...

A firm has $200,000 in current assets, $800,000 in long-term assets and $900,000 in long-term financing....

A firm has $200,000 in current assets, $800,000 in long-term assets and $900,000 in long-term financing. What is its net working capital (CA -CL)? Hint: Prepare a Balance Sheet.

2019 ‘000 US$ 2018 ‘000 US$ Assets Non-current assets Property, plant and equipment Right of use...

2019 ‘000 US$ 2018 ‘000 US$ Assets Non-current assets Property, plant and equipment Right of use assets Investment properties Intangible assets and goodwill Investment in equity accounted investees Other investments Accounts receivable and prepayments 12,226,735 2,080,908 1,672,911 10,054,701 2,200.252 20,009 675,845 8,960,782 - 1,622,130 8,833,151 2,101,425 51,078 574,570 Total non-current assets 28,931,361 22,143,136 Current assets Inventories Properties held for development and sales* Accounts receivable and prepayments Cash and cash equivalents 156,393 194,612 1,836,795 2,943,359 115,590 261,724 1,378,179 2,614,710 Total current...

Part 1 – Current and long-term investments: From the perspective of a potential long-term investor, describe...

Part 1 – Current and long-term investments: From the perspective of a potential long-term investor, describe what you might look for when examining the assets of a corporation. Include in your answer an understanding of how short-term assets and long-term operating assets are different and what role they each play in a company’s performance. Part 2 - What might the different asset balances indicate to you as they change from year-to-year? Part 3 - What relationships would you look for...

Property, Plant & Equipment is considered a long-term asset, and it is capitalized over a period...

Property, Plant & Equipment is considered a long-term asset, and it is capitalized over a period of time. Discuss what capitalization means, how depreciation is calculated and how the accounts are linked between the Balance Sheet and Income Statement to report depreciation activity.

Example Three: Use a Trial Balance to: Calculate Gross Profit (Gross Margin), Current Assets, Long-Term Assets...

Example Three: Use a Trial Balance to: Calculate Gross Profit (Gross Margin), Current Assets, Long-Term Assets (PPE), Current Liabilities, and Long-Term Liabilities Prepare Closing Entries, and Calculate ending balance in Retained Earnings. Account Name Debit Credit Cash 143,500 Accounts Receivable 23,250 Allowance for Uncollectible Accounts 465 Inventory 20,750 Prepaid Rent 3,000 Equipment 30,000 Accumulated Depreciation – Equipment 2,300 Accounts Payable 5,000 Salaries Payable 900 Unearned Revenue 3,500 Notes Payable 45,000 Common Stock 150,000 Retained Earnings 10,250 Dividends 1,500 Sales Revenue...

Ruskin has the following balance sheet: Current assets $30,000,000, Current liabilities $10,000,000, Fixed assets 60,000,000, Long-term...

Ruskin has the following balance sheet: Current assets $30,000,000, Current liabilities $10,000,000, Fixed assets 60,000,000, Long-term debt 25,000,000, Common stock (1 million shares) 1,000,000, Retained earnings 39,000,000, Preferred Stock 15,000,000, Total assets $90,000,000, Total claims $90,000,000. The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company’s...

Determine the following 2021 balance sheet items: 1. Current assets 2. Shareholders’ equity 3. Long-term assets 4. Long-term liabilities

The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. On December 31, 2021, the balance sheet revealed the following: Inventory ................................$ 840,000 Total assets .........................$ 2,800,000 Current ratio ...................................2.25 Acid-test ratio ...................................1.2 Debt to equity ratio .........................1.8 Required: Determine the following 2021 balance sheet items: 1. Current assets 2. Shareholders’ equity 3. Long-term assets 4. Long-term liabilities

Tangible assets that are long term or non-current usually require depreciation entries, What specific information is...

Tangible assets that are long term or non-current usually require depreciation entries, What specific information is required to make the period end adjusting entry? What is the adjusting entry for depreciation of non-current assets?

Subjects