Question

Presented below is the trial balance of Waterway Corporation at December 31, 2020.

		Debit		Credit
Cash		$   201,670
Sales				$ 8,104,230
Debt Investments (trading) (at cost, $145,000)		157,230
Cost of Goods Sold		4,800,000
Debt Investments (long-term)		303,670
Equity Investments (long-term)		281,670
Notes Payable (short-term)				94,230
Accounts Payable				459,230
Selling Expenses		2,004,230
Investment Revenue				64,770
Land		264,230
Buildings		1,044,670
Dividends Payable				140,670
Accrued Liabilities				100,230
Accounts Receivable		439,230
Accumulated Depreciation-Buildings				152,000
Allowance for Doubtful Accounts				29,230
Administrative Expenses		901,770
Interest Expense		212,770
Inventory		601,670
Gain				81,770
Notes Payable (long-term)				904,670
Equipment		604,230
Bonds Payable				1,004,670
Accumulated Depreciation-Equipment				60,000
Franchises		160,000
Common Stock ($5 par)				1,004,230
Treasury Stock		195,230
Patents		195,000
Retained Earnings				82,670
Paid-in Capital in Excess of Par				84,670
Totals		$12,367,270		$12,367,270

Prepare a balance sheet at December 31, 2020, for Waterway Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1

Answer:

Waterway Corporation
Balance Sheet
As of December 31,2020
Assets
Current Assets:
Cash	$        201,670
Debt Investments (trading) (at cost, $145,000)	$        157,230
Accounts Receivable	$        439,230
Allowance for Doubtful Accounts	$        (29,230)
Inventory	$        601,670
Total current assets		$        1,370,570
Investments:
Debt Investments (long-term)	$        303,670
Equity Investments (long-term)	$        281,670
Total investments		$            585,340
Property,plant, and equipment:
Land	$        264,230
Buildings	$    1,044,670
Accumulated Depreciation-Buildings	$     (152,000)
Equipment	$        604,230
Accumulated Depreciation-Equipment	$        (60,000)
Total property,plant and equipment		$        1,701,130
Intangible assets:
Franchises	$        160,000
Patents	$        195,000
Total intangible assets		$            355,000
Total Assets		$        4,012,040
Liabilities
Current liabilities:
Accounts Payable	$        459,230
Dividends Payable	$        140,670
Accrued Liabilities	$        100,230
Notes Payable (short-term)	$          94,230
Total current liabilities		$            794,360
Long-term debt:
Notes Payable (long-term)	$        904,670
Bonds Payable	$    1,004,670
Total long-term debt		$        1,909,340
Total liabilities		$        2,703,700
Stockholders' equity
Common Stock ($5 par)	$    1,004,230
Paid-in Capital in Excess of Par	$          84,670
Retained Earnings [82,670+332,000 net income]	$        414,670
Treasury Stock	$     (195,230)
Total stockholders' equity		$        1,308,340
Total liabilities and stockholders' equity		$        4,012,040