Question

PRACTICE PROBLEM

Utilizing the following information, prepare a classified balance sheet for Shoe Company at December 31, 2017.

Inventory	120,700	Notes Payable*	10,000
Unearned Service Revenue	90,000	Notes Receivable**	140,000
Equipment	200,000	Accounts Receivable	161,000
Cash	37,000	Notes Payable (long-term)	80,000
Allowance for Doubtful Accounts	12,000	Trading Securities***	70,500
Accumulated Depreciation - Equipment	53,000	Land	307,000
Bonds Payable due 1/1/2020	294,000	Building	200,000
Accumulated Depreciation – Bldg	130,600	Accounts Payable	3,700
Franchise	64,300	Common Stock	270,000
Retained Earnings	244,000	Prepaid Rent	45,000
Income Taxes Payable	52,000	Patent	36,400
Additional Paid-in Capital	142,600

*This portion of notes payable is the portion due in the next year.

**The Notes Receivable is due to be paid in three years.

***The company intends to sell the trading securities in the next year.

Answer 1

Classified Balancesheet of Shoe company as on 31st December 2017

Particulars		AMOUNT
Current assets:-
Inventory	120700
Cash	37000
Acc. Receivables	161000
Trading securities	70500
Prepaid rent	45000	434200
Fixed assets:-
Equipment	200000
Less:- Acc. Depreciation	53000	147000
Land		307000
Buildings	200000
Less:- Acc. Depreciation	130600	69400
Other assets
Franchise	64300
Patents	36400	100700
Notes receivable		140000
Total assets		1198300
Current liabilities:-
Unearned service	90000
Allowances for doubtfull accts	12000
Income tax payable	52000
Notes payable	10000
Accounts payable	3700	167700
Long term liabilities:-
Notes payable	80000
Bonds payable	294000	374000
Equity and common stock:-
Common stock	270000
Additional capital	142600
Retained earnings	244000	656600
Total equity and liabilities		1198300