90.2K

Verified Solution

Link Copied!

Account balances and supplemental information for the Kelly Corporation as of December 31, 2021 are given below: Accounts Payable $ 75,900 Accounts Receivable 141,600 Accumulated Depreciation--Equipment 84,000 Bonds Payable 300,000 Cash 243,900 Common Stock 1,560,000 Deferred Income Tax Liability (noncurrent) 6.900 Dividends Payable 45,000 Equipment 840,000 Income Taxes Payable 91,500 Inventory 395,100 Investment in Land 510,000 Investment in Stock of Subsidiary 492.000 Note Payable 120,000 Notes Receivable 150,000 Prepaid Insurance 7,200 Retained Earnings 453,600 Salaries and Wages Payable 42,900 () $300,000 of 12% bonds were issued on December 31, 2021, at par (b) 40,000 shares of $30 par value common stock were sold for S1,560,000. All the equipment was purchased on January 2, 2020. The depreciation rate is 10 percent per (d) 5 percent of accounts receivable are expected to be uncollectible. year. (c) A two-year insurance policy was purchased on May 1, 2021, for $7,200. (1) Accrued interest on $150,000 of short-term notes receivable from customers was $5,100 at December 31, 2021. $120,000 was borrowed from the bank on a 5-year, 10% note payable dated July 1, 2021. The loun is to be repaid at the end of 5 years. Interest is payable cach year on July 1. Required: Prepare a properly classified balance sheet in proper form for Kelly Corporation as of December 31, 2021. NOTE: the above items a-g need to be considered and any adjustments need to be made to the balance sheet accounts and any related income statement effects should be adjusted to the retained earnings account. MADE WITH SPLIT PIC

Answer & Explanation Solved by verified expert

See Answer