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-Building 135,000 Wages payable 6,000 Patent (net of amortization) 120,000 Notes payable (short term) 131,000 Inventory 206,000 Equipment 600,000 Allowance for doubtful accounts 2,000 Required Prepare a December 31 classified balance sheet for Ari Company Do not use negative signs with any of your answers. ARI COMPANY Balance Sheet December 31 Assets

Answer 1

ARI Balance sheet as on December 31:

Description	Amount	Amount
Assets:
Current assets:
Cash		19000
Accounts receivable	22500
Less: Allowance for doubtful accounts	(2000)
Net accounts receivable		20500
Inventory		206000
Total current assets		245500
Plant Assets:
Land		877000
Building	439500
Less: Accumulated depreciation	(135000)	304500
Equipment	600000
Less: Accumulated depreciation	(180000)	420000
Total Plant assets:		1601500
Intangible assets:
Patent (net of amortization)		120000
Total assets		1967000
Liabilities:
Current liabilities:
Accounts payable		20000
Wages payable		6000
Notes payable (short term)		131000
Total current liabilities		157000
Long term liabilities:
Long term notes payable		785000
Total liabilities		942000
Stockholder's equity:
Common stock		950000
Retained earnings		75000
Total stockholder's equity		1025000
Total liabilities & stockholder's equity		1967000