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5 March, 23:47

These items are taken from the financial statements of Windsor, Inc. at December 31, 2017.

Buildings

$97,336

Accounts receivable

11,592

Prepaid insurance

2,944

Cash

10,893

Equipment

75,808

Land

56,304

Insurance expense

718

Depreciation expense

4,876

Interest expense

2,392

Common stock

55,200

Retained earnings (January 1, 2017)

36,801

Accumulated depreciation-buildings

41,952

Accounts payable

8,740

Notes payable

86,112

Accumulated depreciation-equipment

17,222

Interest payable

3,312

Service revenue

13,524

Prepare a classified balance sheet. Assume that $12,512 of the note payable will be paid in 2018. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment.)

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Answers (1)
  1. 6 March, 00:07
    0
    To make balance sheet we first have to calculate net income/net profit for the year.

    Net profit Calculation

    Service revenue $ 13,524

    Insurance expense ($ 718)

    Depreciation expense ($ 4,876)

    Interest expense ($ 2,392)

    Profit $ 5,538

    Balance Sheet

    Asset

    Non-Current Asset

    Land $56,304

    Buildings $97,336

    Accumulated depreciation-buildings ($41,952)

    Equipment $75,808

    Accumulated depreciation-equipment ($17,222)

    Total non Current Asset $170,274

    Current Asset

    Cash $10,893

    Accounts receivable $11,592

    Prepaid insurance $2,944

    Current Asset $25,429

    Total Asset $195,703

    Equity

    Common stock $55,200

    Retain Earning (36,801+5,538) $42,339

    Total Equity $97,539

    Liability

    Non-Current Liability

    Current Liability

    Accounts payable $8,740

    Notes payable $86,112

    Interest payable $3,312

    Total Current Liability $98,164

    Total Liability + Equity $195,703
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