Question

3. Katy Manufacturing Co's adjusted trial balance for the year 20 * adjusted trial balance for the year 2020 is given below. Cash and Cash Equivalents Accounts Receivable Allowance for Doubtful Accounts Sales Revenue Prepaid Expenses Inventory - Finished Goods Equipment Accumulated Depreciation - Equipment Administrative Expenses Accounts Payable Short-Term Notes Payable Income Taxes Payable Additional Paid-In Capital Retained Earnings Rent Expenses Interest Expense Salaries Expenses Treasury Stock Long-Term Debt Common Stock Income Tax Expense Cost of Goods Sold 18,500 23,500 2.000 127,500 3,500 36,500 47,500 7,500 16,800 20,000 6,700 8,300 9,000 29,000 2,400 1,400 9,400 1,000 25,000 23,000 5,000 82,500 Required: Prepare a balance sheet in good format for December 31, 2020.

Answer 1

Answer-

KATY MANUFCATURING CO.
BALANCE SHEET
DECEMBER 31,2020
Assets		Amount
Current Assets		80000
Cash	18500
Inventory-Finished goods	36500
Accounts receivable,net	21500
Prepaid expenses	3500
Non Current Assets
Equipment	47500
Less- Accumulated depreciation	7500	40000
Total Assets		120000
Liabilities
Current liabilities		35000
Accounts payable	20000
Short-Term Notes Payable	6700
Income Taxes payable	8300
Long-term liabilities
Long-term debt		25000
Owner's capital		60000
Capital stock	23000
Additional paid-In Capital	9000
Treasury stock	-1000
Retained earnings	29000
Total liabilties and owner's capital		120000