Question

The following is the ending balances of accounts at June 30, 2018 for Excell Company.

Account Title	Debits				Credits
Cash	$	89,000
Short-term investments		71,000
Accounts receivable		286,000
Prepaid expenses		38,000
Land		81,000
Buildings		326,000
Accumulated depreciation—buildings				$	163,000
Equipment		268,000
Accumulated depreciation—equipment					123,000
Accounts payable					176,000
Accrued expenses					48,000
Notes payable					106,000
Mortgage payable					220,000
Common stock					130,000
Retained earnings					193,000
Totals	$	1,159,000		$	1,159,000

Additional information:

1. The short-term investments account includes $21,000 in U.S. treasury bills purchased in May. The bills mature in July.
2. The accounts receivable account consists of the following:

a.	Amounts owed by customers	$	228,000
b.	Allowance for uncollectible accounts—trade customers		(18,000	)
c.	Non trade note receivable (due in three years)		68,000
d.	Interest receivable on note (due in four months)		8,000
	Total	$	286,000

3. The notes payable account consists of two notes of $53,000 each. One note is due on September 30, 2018, and the other is due on November 30, 2019.
4. The mortgage payable is payable in semiannual installments of $4,400 each plus interest. The next payment is due on October 31, 2018. Interest has been properly accrued and is included in accrued expenses.
5. Eight hundred thousand shares of no par common stock are authorized, of which 260,000 shares have been issued and are outstanding.
6. The land account includes $53,000 representing the cost of the land on which the company's office building resides. The remaining $28,000 is the cost of land that the company is holding for investment purposes.

Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Ans-Preparing a classified balance sheet for the Excell Company at June 30,2018:-

Excell Company

Balance Sheet

At June 30,2018

ASSETS	Amount ($)	Amount ($)
Current Assets:-
Cash and cash equivalents	110,000
Short-term investments	50,000
Accounts receivable, net of allowance for uncollectible accounts of $18,000	210,000
Interest receivable	8,000
Prepaid expenses	38,000
Total Current Assets		416,000
Investments:-
Notes receivable (nontrade)	68,000
Land held for sale	28,000
Total Investments		96,000
Property, plant and equipment assets:
Land	53,000
Buildings	326,000
Equipment	268,000
Less: Accumulated depreciation	(286,000) ($163,000+$123,000)
Total Property,plant and equipment		361,000
Total Assets		873,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	176,000
Accrued expenses	48,000
Notes payable	53,000
Current maturities of long-term debt	12,400
Total Current Liabilities		289,400
Long-term Liabilities:-
Notes Payable	53,000
Mortgage payable	207,600
Total Long-term Liabilities		260,600
Stockholders' Equity:-
Common Stock, no par value	130,000
Retained Earnings	193,000
Total stockholders' Equity		323,000
Total Liabilities and Stockholders' Equity		873,000

Working Notes:-

1-Calculate cash and cash equivalents:-

Cash and cash equivalents= Cash as per trial balance +Amount of U.S. Treasury bill

=$89,000+$21,000

=$110,000

2- Calculate the amount of short term investments:-

Short-term investment= Short-term investment as per trial balance - Amount of U.S. Treasury bill

=$71,000-$21,000

=$50,000

3- Calculate the amount of notes receivable, net of allowance for uncollectible accounts:-

Notes receivable, net of allowance for uncollectible accounts= Amount owned by customers-Allowance for uncollectible accounts

=$228,000-$18,000

=$210,000

4-Calculate the amount of mortgage payable:-

Mortgage payable = Mortgage payable as per trial balance- Semiannual installment plus interest

=$220,000-$4,400+$8,000

=$207,600

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