Presented below is the trial balance for the Messenger Corporation at December 31, 2021. ...

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Accounting

Presented below is the trial balance for the Messenger Corporation at December 31, 2021.

Account Title Debits Credits

Cash and cash equivalents 30,000

Accounts receivable 195,000

Raw materials inventory 36,000

Notes receivable 120,000

Interest receivable 4,000

Interest payable 7,000

Investments 48,000

Land 100,000

Buildings 1,500,000

Accumulated depreciationbuildings 740,000

Work in process inventory 38,000

Finished goods inventory 98,000

Equipment 400,000

Accumulated depreciationequipment 230,000

Franchise (net of amortization) 120,000

Prepaid insurance (for the next year) 60,000

Deferred revenue 48,000

Accounts payable 240,000

Notes payable 500,000

Salaries payable 6,000

Allowance for uncollectible accounts 24,000

Common stock 500,000

Retained earnings 454,000

Additional information:

1. The notes receivable, along with any accrued interest, are due on November 1, 2022.

2. The notes payable are due in 2026. Interest is payable annually.

3. The investments consist of equity securities of other corporations. Management does not intend to sell any of the securities in the next year.

4. Deferred revenue will be recognized equally over the next 18 months.

5. Common stock has no par value, there are 100,000 shares issued and outstanding, and 200,000 shares authorized.

Required:

  1. Prepare a classified balance sheet for Messenger Corporation at December 31, 2021.
  2. Describe the disclosure requirements for the following items:
    1. Accounts receivable
    2. Property, plant, and equipment
    3. Notes payable

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