Question

Preparation of Balance Sheet Ari Company's December 31 post.closing trial balance contains the following normal balances: Cash $19,000 Accounts payable 20,000 Building 439,500 Long-term notes payable 785,000 Common stock 950,000 Retained earnings 75,000 Accumulated depreciation-Equipment 180,000 Land 877,000 Accounts receivable 22,500 Accumulated depreciation- Wages payable 6,000 Patent (net of amortization) Notes payable (short term) Inventory Equipment Allowance for doubtful accounts 2,000 con-- Building 135,000 Required Prepare a December 31 classified balance sheet Do not use negative signs with any of your ans ARI COMPANY Balance Sheet December 31 Assets Current Assets: Total Current Assets

Answer 1

ARI COMPANY
Balance Sheet
Dec-31
Assets:
Current assets:
Cash		$       19,000
Accounts receivable	$     22,500
Less: Allowance for doubtful accounts	$ 2,000	$       20,500
Inventory		$     206,000
Total current assets		$     245,500
Plant Assets:
Land		$     877,000
Building	$   439,500
Less: Accumulated depreciation	$ 135,000	$     304,500
Equipment	$   600,000
Less: Accumulated depreciation	$ 180,000	$     420,000
Total Plant assets		$ 1,601,500
Intangible assets:
Patent (net of amortization)		$     120,000
Total assets		$ 1,967,000
Liabilities:
Current liabilities:
Accounts payable		$       20,000
Wages payable		$          6,000
Notes payable (short term)		$     131,000
Total current liabilities		$     157,000
Long term liabilities:
Long term notes payable		$     785,000
Total liabilities		$     942,000
Stockholder's equity:
Common stock		$     950,000
Retained earnings		$       75,000
Total stockholder's equity		$ 1,025,000
Total liabilities and stockholder's equity		$ 1,967,000