Question

Exercise 4-16 The following items were taken from the financial statements of P. Blossom Company. (All amounts are in thousands.) Long-term debt $1.100 $5,200 Accumulated depreciation- equipment Accounts payable Notes payable (due after 2021) 810 11,500 400 1,000 300 Owner's capital 14,510 Prepaid insurance Equipment Stock investments (long- term) Debt investments (short- term) Notes payable (due in 2021) Cash Accounts receivable 1,400 4,200 600 2,800 Inventory 1,600 Prepare a classified balance sheet in good form as of December 31, 2020. (List Current Assets in order of liquidity. Enter amounts in thousands.)

Answer 1

P. Blossom Company
BALANCE SHEET
As Of December 31, 2017
ASSETS	Amount	Amount
Current Assets
Cash	$2,800.00
Debt investments (short-term)	$4,200.00
Accounts receivable	$1,400.00
Inventory	$1,600.00
Prepaid insurance	$810.00
Total Current Assets		$10,810.00
Long term Investment
Stock investments (long-term)		$400.00
Property, plant, and equipment
Equipment	$11,500.00
Less: Accumulated depreciation – equipment	-$5,200.00	$6,300.00
TOTAL ASSETS		$17,510.00
LIABILITIES & STOCKHOLDERS’ EQUITY	Amount	Amount
Current liabilities
Accounts payable	$1,000.00
Notes payable (due in 2021)	$600.00
Total current liabilities		$1,600.00
Long term liabilities
Long-term debt	$1,100.00
Notes payable (due after 2018)	$300.00
Total long term liabilities		$1,400.00
Stockholders’ equity
Owner Capital		$14,510.00
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY		$17,510.00