Question

Exercise 4-16 Preparing a classified balance sheet for a merchandiser LO P4 Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable Buildings Prepaid rent Merchandise inventory Accounts payable Prepaid insurance Accounts receivable Common stock 8. Bee Retained earnings 87,eee Notes payable (due in 9 years) 9,eee office supplies 18,888 Land 30,eee Accumulated depreciation-Building 7,000 Mortgages payable (due in 5 years) 24,000 Cash 30,eee 79, eee 7e,eee 6, eee 62,eee 9, eee 52,888 56. eee Required: Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Classified balance sheet

Assets
Current assets
Cash		56000
Account receivable		24000
Office supplies		6000
Merchandise inventory		18000
Prepaid insurance		7000
Prepaid rent		9000
Total Current assets			120000
Property, plant and equipment
Land		62000
Building	87000
Less: Accumulated depreciation	-9000	78000
Total property, plant and equipment			140000
Total assets			260000
Liabilities and stockholder;s equity
Current liabilities
Account payable		30000
Salaries payable		8000
Total Current liabilities			38000
Long term liabilities
Mortgage payable		52000
Notes payable		70000
Total long term liabilities			122000
Stockholder's equity
Common Stock		30000
Retained earnings		70000
Total Stockholder's equity			100000
Total liabilities and stockholder's equity			260000