Question

The adjusted trial balance for Berk Corporation at December 31, 2019 contained the following accounts: Short-term Investments, at fair value ............ Investments in stock of 20-50% owned companies, at equity...... Bonds payable, 10% due 2025 ......... Interest payable............. Discount on bonds payable. .................. Lease liability Mortgage notes payable, 9%, due 2030...... Accounts payable..... $ 150,000 180,000 1,000,000 50,000 20,000 50,000 200,000 90,000 Instructions: Prepare the "partial" Balance Sheet of the Berk Corporation in "good" form. Be sure to classify the Assets between current assets and investments and the liabilities between current and long- term Liabilities

Answer 1

BALANCE SHEET OF BERK CORPORATION AS ON 31/12/2019.

ASSETS	AMOUNT
INVESTMENTS
INVESTMENT IN STOCK OF 20-50% OWNED COMPANIES	180,000
CURRENT ASSETS
SHORT TERM INVESTMENTS	150,000
OTHER MISC ASSETS
DISCOUNT ON BONDS PAYABLE	20,000
TOTAL	350,000

LIABILITIES	AMOUNT
LONG TERM LIABILITY
BONDS PAYABLE, 10% DUE ON 2025	1000,000
MORTGAGE NOTES PAYABLE, 9%, DUE 2030	200,000
CURRENT LIABILITY
INTEREST PAYABLE	50,000
LEASE LIABILITY	50,000
ACCOUNTS PAYABLE	90,000
TOTAL	1390,000