Question

prepare classified balance sheet using the following information building not in use $22100 long term notes payable $20000 interest payable $420 deposit for advertising $1840 salaries payable $3850 cash $21400 accounts payable $62300 trademark $2000 Accumulated depreciation equipment $1420 deliver equipment $ 21600 land $15700 notes receivable $143500 prepaid insurance $2400 income tax payable $1890 common stock $145000 office supplies $220 prepaid rent $1050 merchandise inventory $72500 sales supplies $650 investment (stocks and bonds) $17150. what is retained earnings?

Answer 1

Answer Required balance sheet is as following'

Balance Sheet
As on ………..
Assets
Current Assets
	Cash	21,400
	Sales supplies	650
	office supplies	220
	Inventory	72,500
	Prepaid rent	1,050
	Prepaid insurance	2,400
	Notes receivable	143,500
	Total current assets	241,720
Fixed (Long-Term) Assets
	Building	22,100
	Land	15,700
	Property, plant, and equipment	21,600
	(Less accumulated depreciation)	(1,420)
	Investments	17,150
	Intangible assets (trade marks)	2,000
	Total fixed assets	77,130
Total Assets		318,850
Liabilities and Owner's Equity
Current Liabilities
	Accounts payable	62,300
	Salaries payable	3,850
	Income taxes payable	1,890
	Interest payable	420
	Deposit for advertisement	1,840
	Current portion of long-term debt
	Total current liabilities	70,300
Long-Term Liabilities
	Long term notes payable	20,000
	Deferred income tax
	Other
	Total long-term liabilities	20,000
Stockholder statement
	Common stock	145,000
	Retained earnings	83,550
	Other
	Total equity	228,550
Total Liabilities and Owner's Equity		318,850

Retained earnings calculated as

Building	22100	notes payable	20000
Cash	21400	Interest payable	420
		deposit for advertisement	1840
trademark	2000	salaries payable	3850
equipment	21600	accounts payable	62300
accumulated dep.	-1420	Income tax payable	1890
land	15700	common stock	145000
notes receivable	143500	Total Liabilities and equity	235300
prepaid insurance	2400
office supplies	220
prepaid rent	1050
merchandise inventory	72500
sales supplies	650
investment	17150
Total Assets	318850
Retained earnings = Total assets-total liabilities = $318850-235300			$        83,550