Question

12A-2. Prepare a statement of owner's equity and a classified balance sheet from partial worksheet for Goods Company (page 417). Note: Of the Mortgage Payable, $200 is due within one year.

Answer 1

Good Company Statement of Owner's Equity For the year ended Dec 31, 2020 Beginning Balance as on Jan 1, 2020 Less: Net Loss for the year $7,400 ($3,710) $3,690 ($100) $3,590 Less: Withdrawals Ending Balance as on Dec 31, 2020 Assets Cash Petty Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets Good Company Classified Balance Sheet December 31, 2020 Amount Amount Liabilities $8,500 Accounts Payable $90 Accrued Salaries Payable $1,350 Taxes payable $4,000 Unearned Rent $325 Mortgage Payable $500 $14,765 Total Current Liabilities Amount $2,800 $600 $2,400 $8,500 $450 $14,750 Owners' Equity $3,590 $1,700 Non Current Assets Automobile Less: Accumulated Depreciation - Automobile Store Equipment Less: Accumulated Depreciation - Store Equipment $1,475 $2,800 ($700) $2,100 Total Assets $18,340 Total Liabilities and Owner's Equity $18,340