Question

Brar Maintenance Company showed the following adjusted trial balance information for its December 31, 2020, year-end. Account Accounts payable Accounts receivable Accum. deprec., building Accum. deprec., machinery Allowance for doubtful accounts Building Cash Estimated warranty liabilities Income taxes payable Income tax expense Interest payable Balance1 Account $ 43,500 Interest receivable 37,800 Jake Brar, capital 364,000 Land 137,000 Machinery 2,900 Merchandise inventory 538,000 Notes payable? 20,100 Notes receivable, due 2021 12,100 Operating expenses 8,900 Prepaid rent 120,400 Revenue 710 Unearned revenue Balance 1 145 149,035 83,200 307,000 137,000 202,000 23,800 913,900 90,000 1,320,000 31,200 'Assume all accounts have a normal balance. 2$155,000 of the note payable is due beyond December 31, 2021.

Answer 1

BRAR MAINTENANCE COMPANY
Balance Sheet
December 31, 2020
Assets
Current assets
Cash		$20,100
Accounts receivable	$37,800
Less: Allowance for doubtful accounts	$2,900	$34,900
Interest receivable		$145
Inventory		$137,000
Prepaid rent		$90,000
Notes receivables, due 2021		$23,800
Total Current Assets			$305,945
Property, Plant, and Equipment
Land		$83,200
Building	$538,000
Less: Accumulated depreciation - building	$364,000	$174,000
Machinery	$307,000
Less: Accumulated depreciation - Machinery	$137,000	$170,000
Total property, Plant, and Equipment      [$83,200 + $174,000 + $170,000]			$427,200
Total Assets                                            [$305,945 + $427,200]			$733,145
Liabilities
Current Liabilities
Accounts Payable		$43,500
Estimated warranty payable		$12,100
Income taxes payable		$8,900
Interest payable		$710
Current portion of long-term notes Payable   [Total notes payable - Notes payable due beyond Dec. 31, 2021 = $202,000 - $155,000]		$47,000
Unearned revenue		$31,200
Total Current Liabilities			$143,410
Non-current liabilities:
Long term Notes payable (less current portion)			$155,000
Total liabilities          [$143,410 + $155,000]]			$298,410
Equity
Jake Brar, Capital       [Beginning balance + Revenue - Operating expenses - Income tax expense = $149,035 + $1,320,000 - $913,900 - $120,400			$434,735
Total Liabilities and Equity        [Total liabilities + Equity = $298,410 + $434,735]			$733,145