Question

A. Prepare the balance sheet at December 31st using the report format.

B. Prepare the balance sheet at December 31st using the account format.

Earl Corporation provided the following acoount balances prepared at December 31st of the current year EE (Click the loon to view the Snancial data.) Account balances 1. Prepare the balance sheet at December 31st using the report format 2. Prepare the balance sheet at December 31st using the aocount format eequirement a. Prepare ine baiance sneet at uecemoer iusing tre repont format Begin by preparing the asset section of the balance sheet and then prepare the liabilitios and stockholders' equity DebitCredit $900,000 9,000 Additional paid-in capital aquity sectionDividands 395,000 336,000 920,000 Equipment under capital lease Intangible assets-net Merchandise inventory Inoome taxes payable Cash Notes payable, due in 10 years Acoumulated other comprehensive loss Current porion of long-term debt Property, plant, and equipment-net Investments in affiliate oompanies (noncurrent) Accounts receivable Bonds payable, due in 20 years Investments at fair value (current) Accounts payable Retained earnings Obligations under capital leases Obligations under pension plans Deferred tax Sability (noncurrent) Common stock, $1 par value Earl Corporation Balance Sheet At December 31 200,000 10,000 740,000 360,000 3,000,000 120,000 225,000 850,000 490,000 1,150,000 200,000 07,000 50,000 620,000 Choose from any list or enter any number in the input teids and then click Check Answer

Answer 1

A) Balance sheet in report format

Earl Company

Balance sheet

At december 31

Assets	Amount
Non Current Assets
Property, plant and equipment, net	$3000000
Investment in affiliates	$120000
Intangible assets net	$336000
Equipment under capital lease	$395000
Total Non current Assets (A)	$3851000
Current Assets
Investments at fair value	$665000
Account receivable	$225000
Cash	$610000
Merchandise Inventory	$920000
Total Current Assets (B)	$2420000
Total Assets (A+B)	$6271000
Liabilities
Non Current Liability
Deferred Tax liability	$350000
Obligation under capital lease	$200000
Obligation under pension plan	$607000
Bonds payable	$850000
Notes Payable	$740000
Total Non current Liability (A)	$2747000
Current Liability
Accounts payable	$490000
Dividend Payable	$9000
Current portion of long term debt	$360000
Income Tax payable	$200000
Total Current Liability (B)	$1059000
Total Liability (C) = (A+B)	$3806000
Owner's equity
Common stock, $1 par value	$620000
Additional paid in capital	$900000
Accumulated other comprehensive loss	($205000)
Retained earnings	$1150000
Total Owner's equity (D)	$2465000
Total Liabilities and owner's equity (C+D)	$6271000

B) Balance sheet in account format

Earl Company

Balance sheet

At december 31

Assets	Amount	Amount	Liabilities & owner's equity	Amount	Amount
Current Assets			Current Liability
Investment at fair value	$665000		Account payable	$490000
Account receivable	$225000		Dividend payable	$9000
Cash	$610000		Current portion of long term debt	$360000
Merchandise Inventory	$920000	$2420000	Income tax payable	$200000	$1059000
Non Current Assets			Non current Liability
Property plant and equipment, net	$3000000		Deferred tax liability	$350000
Investments in affiliates	$120000		Obligatiob under capital lease	$200000
Intangible Assets	$336000		Obligation under pension plan	$607000
Equipment under capital lease	$395000	$3851000	Bonds payable	$850000
			Notes payable	$740000	$2747000
			Owner's equity
			Common stock	$620000
			Additional paid in capital	$900000
			Accumulated other comprehensive loss	($205000)
			Retained earnings	$1150000	$2465000
Total Assets		$6271000	Total Liabilities and owner's equity		$6271000