Question

Question 3 View Policies Current Attempt in Progress These items are taken from the financial statements of Carla Vista Co. at December 31, 2022 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2022) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue $101,568 12,096 3,072 11.366 79,104 58.752 749 5,088 2.496 57,600 38,400 43,776 9,120 89,856 17,971 3,456 14,112 Prepare a classified balance sheet. Assume that $13,056 of the note payable will be paid in 2023. (List Current Assets in order of liquidity and Property, Plant and Equipment in order of Land, Buildings and Equipment.) CARLA VISTA CO. Balance Sheet

Answer 1

$ 14,112 Carla Vista Co. Income Statement Year Ended December 31, 2022 Revenue Service revenue Expenses Depreciation expense $ Interest expense $ Insurance expense $ Net Income 5,088 2,496 749 $ $ 8,333 5,779 b c= a - b

Carla Vista Co. Statement of Retained Earnings Year Ended December 31, 2022 38,400 5,779 Beginning Balance Add: Net Income Less: Dividends Ending Balance 44,179

11,366 12,096 3,072 Carla Vista Co. Balance Sheet As on December 31, 2022 ASSETS Current assets Cash Accounts receivable Prepaid insurance Total current assets Non-current assets Land $ Buildings $ 101,568 Less: Accumulated depreciation - buildings $ (43,776) $ Equipment $ 79,104 Less: Accumulated depreciation $ (17,971) $ Total assets $ 26,534 58,752 57,792 61,133 $ $ 177,677 204,211 9,120 13,056 3,456 $ 25,632 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ Current portion of long-term debt - notes payable $ Interest payable Total current liabilities Long term liabilities Note payable Total liabilities Stockholders' equity Common stock $ Retained earnings $ Total stockholders' equity Total liabilities and stockholders' equity $ $ 76,800 102,432 57,600 44,179 $ $ 101,779 204,211

• The amount of principal that will be due within one year from the balance sheet date is the current portion of long-term debt. It is a current liability.
  • $13,056 of the note payable is payable in 2023, i.e. within one year from the balance sheet date December 31, 2022. This is classified as current liability.
  • Long-term debt = $89,856 - $13,056 = $76,800