PRACTICE PROBLEMUtilizing the following information, prepare a classifiedbalance sheet for Shoe Company at December...PRACTICE...

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Accounting

PRACTICE PROBLEM
Utilizing the following information, prepare a classifiedbalance 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 nextyear.
The Notes Receivable is due to be paid in three years.
The company intends to sell the trading securities in thenext year.

Answer & Explanation Solved by verified expert

3.8 Ratings (423 Votes)

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

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Transcribed Image Text

In: AccountingPRACTICE PROBLEMUtilizing the following information, prepare a classifiedbalance sheet for Shoe Company at December...PRACTICE PROBLEMUtilizing the following information, prepare a classifiedbalance sheet for Shoe Company at December 31, 2017.Inventory120,700Notes Payable*10,000Unearned Service Revenue90,000Notes Receivable**140,000Equipment200,000Accounts Receivable161,000Cash37,000Notes Payable (long-term)80,000Allowance for Doubtful Accounts12,000Trading Securities***70,500Accumulated Depreciation - Equipment53,000Land307,000Bonds Payable due 1/1/2020294,000Building200,000Accumulated Depreciation – Bldg130,600Accounts Payable3,700Franchise64,300Common Stock270,000Retained Earnings244,000Prepaid Rent45,000Income Taxes Payable52,000Patent36,400Additional Paid-in Capital142,600*This portion of notes payable is the portion due in the nextyear.**The Notes Receivable is due to be paid in three years.***The company intends to sell the trading securities in thenext year.

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