Question

The following is the ending balances of accounts at June 30, 2018 for Excell Company.

Account Title	Debits				Credits
Cash	$	121,000
Short-term investments		103,000
Accounts receivable		318,000
Prepaid expenses		70,000
Land		113,000
Buildings		358,000
Accumulated depreciation—buildings				$	179,000
Equipment		284,000
Accumulated depreciation—equipment					139,000
Accounts payable					192,000
Accrued expenses					64,000
Notes payable					138,000
Mortgage payable					320,000
Common stock					290,000
Retained earnings					45,000
Totals	$	1,367,000		$	1,367,000

Additional information:

1. The short-term investments account includes $37,000 in U.S. treasury bills purchased in May. The bills mature in July.
2. The accounts receivable account consists of the following:

a.	Amounts owed by customers	$	252,000
b.	Allowance for uncollectible accounts—trade customers		(26,000	)
c.	Non trade note receivable (due in three years)		84,000
d.	Interest receivable on note (due in four months)		8,000
	Total	$	318,000

3. The notes payable account consists of two notes of $69,000 each. One note is due on September 30, 2018, and the other is due on November 30, 2019.
4. The mortgage payable is payable in semiannual installments of $6,400 each plus interest. The next payment is due on October 31, 2018. Interest has been properly accrued and is included in accrued expenses.
5. Nine hundred thousand shares of no par common stock are authorized, of which 580,000 shares have been issued and are outstanding.
6. The land account includes $69,000 representing the cost of the land on which the company's office building resides. The remaining $44,000 is the cost of land that the company is holding for investment purposes.

Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

EXCELL COMPANY
Balance Sheet
At June 30, 2018
Assets
Current assets:
Cash and cash equivalents		$      158,000.00
Short-term investments		$        66,000.00
Accounts receivable, net of allowance for uncollectible accounts of $26,000		$      226,000.00
Interest receivable		$          8,000.00
Prepaid expenses		$        70,000.00
Total current assets		$      528,000.00
Investments:
Note Receivable	$      84,000.00
Land Held for Sale	$      44,000.00	$      128,000.00
Property, plant, and equipment:
Land	$      69,000.00
Buildings	$    358,000.00
Equipment	$    284,000.00
	$    711,000.00
Less: Accumulated depreciation-buildings	$ (179,000.00)
Less: Accumulated depreciation-equipment	$ (139,000.00)
Net property, plant, and equipment		$      393,000.00
Total Assets		$ 1,049,000.00
Liabilities and Shareholders' Equity
Current liabilities:
Accounts Payable		$      192,000.00
Accrued Expenses		$        64,000.00
Notes Payable		$        69,000.00
Current maturities of long-term debt		$        12,800.00
Total current liabilities		$      337,800.00
Long-term liabilities:
Notes Payable	$      69,000.00
Mortgage payable	$    307,200.00
Total long-term liabilities		$      376,200.00
Total Liabilities		$      714,000.00
Shareholders’ equity:
Common stock, no par value; 900,000 shares	290,000.00
authorized; 580,000 shares issued and outstanding
Retained Earnings	45,000.00
Total shareholders’ equity		335,000.00
Total liabilities and shareholders’ equity		$ 1,049,000.00