Question

Selected financial information for Sandhill as at December 31, 2021. follows Ences rations Accounts payable $209,000 Land $107.000 LUS Support Accounts receivable 190.000 Licences 60,000 Accumulated depreciation-building Building 75,000 Long term equity investments 47,000 256,000 Mortgage payable 217,000 Cash 15,500 Notes payable 55,000 Goodwill 36,000 Prepaid expenses 7,300 Interest payable 17,000 Salarles payable 29,500 J.Chrowder, capital 98,800 Supplies 10,000 Unearned revenue 27.500 Additional information: 1. All accounts have normal balances. 2 $18,000 of the mortgage payable will be paid before December 31, 2022. 3. The notes payable are payable on May 17, 2022 Prepare a classified balance sheet. (List Current Assets in order of liquidity List Property Plant and Equipment in order of Land, Building and Equipment)

Answer 1

Classified Balance Sheet
Assets
Cash	$15,500
Accounts receivable	$190,000
Prepaid insurance	$7,300
Supplies	$10,000
Toal current assets		$222,800
Investments
Long Term Equity investment	$47,000	$47,000
Property, plant, and equipment:
Land	$107,000
Building	$256,000
Less: Accumulated Depreciation	-$75,000
Net property, plant, and equipment		$288,000
Intangibles:
Goodwill	$36,000
License	$60,000	$96,000
Total assets			$653,800
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	$209,000
Salaries Payable	$29,500
Interest payable	$17,000
Mortgage PAyable	$18,000
Unearned Service revenue	$27,500
Total current liabilities		$301,000
Long-term liabilities
Note Payabe	$55,000
Mortgage Payable (217000-18000)	$199,000	$254,000
J Chrowder Capital		$98,800
Total Liability & Equity			$653,800