Question

CALCULATOR Exercise 4-14 a The adjusted trial balance for Carla Vista Bowling Alley at December 31, 2020, contains the following accounts. FULL SCREEN PRINTER VERSION 4 BACK Debits Buildings Accounts Receivable Prepaid Insurance Cash Equipment Land Insurance Expense Depreciation Expense Interest Expense $128,200 14,000 5,000 18,600 Credits Owner's Capital Accumulated Depreciation Buildings Accounts Payable Notes Payable Accumulated Depreciation-Equipment Interest Payable Service Revenue 62,200 66,600 900 6,700 2,900 $305,100 $117,400 12,600 11,300 97,000 17,800 2,000 17,000 $305,100 (a) Prepare a classified balance sheet; assume that $29,200 of the note payable will be paid in 2021. (List Current Assets in order of liquidity. List Property, plant and Equipment in order of Land, Buildings and Equipment.) CARLA VISTA BOWLING ALLEY Balance Sheet Assets

Answer 1

$11,300 $2,000 $29,200 Carla Vista Bowling Alley Classified Balance Sheet December 31, 2020 Liabilities & Owners' Equity Currrent Liabilities: $18,600 Accounts Payable $14,000 Interest Payable $5,000 Short-Term Payable $37,600 Total Current Liabilities Long-Term Liabilities: $66,600 Long-term Note Payable Total Liabilities: $85,600 Owners' Equity: $44,400 Owner's Capital $196,600 $234,200 Total Liabilities & Owners' equity Assets Current Assets: Cash Accounts Receivable Prepaid Insurance Total Current Assets Property, plant and Equipment: Land Building Accumulated Dep. - Building Equipment Accumulated Dep. - Equipment Property, Plant and Equipment, Net Total Assets [Due in 2021] $42,500 $67,800 ($97000 - $29200] $110,300 $128,200 $42,600 $62,200 -$17,800 $123,900 (Ref: Workings] $234,200

$117,400 [Ref: Income Statement] Workings: Carla Vista Bowling Alley Carla Vista Bowling Alley Income Statement Statement of Owners' Equity For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 Revenues: Owner's Capital - Beginning Balance Service Revenue $17,000 Add: Net Income $6,500 Expenses: Less: Withdrawals $0 Insurance Expense $900 Net increase in owner's capital Depreciation Expense $6,700 Owner's Capital - Ending Balance Interest Expense $2,900 Total Expenses $10,500 Net Income $6,500 ($17000 - $10500] $6,500 $123,900