Question

Prepare a classified statement of financial position. Assume that 10,880 of the bank loa payable will be paid in 2019.

These items are taken from the financial statements of Blue Spruce Corp, at December 31, 2018. Buildings $84,640 Accounts receivable 10,080 Prepaid insurance 3,744 Cash 9.472 Equipment 65,920 Land 48,960 464 Office expense Income tax expense Depreciation expense 160 4,240 Interest expense 2,080 Common shares 49,600 32,000 Retained earnings (January 1, 2018) Accumulated depreciation-building 36,480 Accounts payable 6,720 Income taxes payable 880 Bank loan payable (due July 1, 2020) 74,880 Accumulated depreciation-equipment 14,976 Interest payable 2,880 Sales 11,344 search

Answer 1

Blue Spruce Corp. 9472 10080 3744 Balance Sheet December 31, 2018 Assets Current assets Cash Accounts receivable Prepaid Insurance Total current assets Property, plant, and equipment Land Building Less: Accumulated depreciation - building Equipment Less: Accumulated depreciation - equipment Total assets 23296 48960 48160 84640 -36480 65920 -14976 50944 148064 171360 6720 10880 2880 880 21360 Liabilities and Stockholders' Equity Current liabilities Accounts payable Current portion of note payable Interest payable Income Taxes Payable Total current liabilities Long-term liabilities Bank Loan payable Total liabilities Stockholders' equity Common stock Retained earnings ($32,000 + $4,400*) Total stockholders' equity Total liabilities and Stockholders' equity 64000 85360 49600 36400 86000 171360 *Net income = $11,344 - $464 - $4,240 - $2,080 - $ 160 = $4,400