Question

The following items are taken from the financial statements of Crane Company at December 31, 2022. Land Accounts receivable Supplies Cash Equipment Buildings Land improvements Notes receivable (due in 2023) Accumulated depreciation-land improvements Common stock Retained earnings (December 31, 2022) Accumulated depreciation-buildings Accounts payable Mortgage payable Accumulated depreciation-equipment Interest payable Income taxes payable Patents Investments in stock (long-term) Debt investments (short-term) $195,800 21,400 10,400 11,850 83,800 262,000 45,900 5,400 13,200 80,000 500,000 33,600 9,600 86,450 18,900 3,100 15,100 47,100 71,600 4,700 Prepare a classified balance sheet. Assume that $10,500 of the mortgage payable will be paid in 2023. (List Current Assets in order of liquidity. List Property, plant and Equipment in order of Land, Buildings, Equipment and Land Improvements.)

Answer 1

Balance sheet of Crane company as on December 31, 2022 is as follows

as on Crane Company Balance sheet Particulars (1) property plant and Equipment 31-12-2022 Amount Land Building - Refer note-2 Equipment - Refer note 2 Land improvements - Refer note - 2 $195,800 $22,400 $ 64,900 $ 32,700 Intangible Assets patents 3 Long term investments - Refer note 4 & Current Assets - refer note 1 Total Assets (A) $ 47, 100 $ 71,600 $53,750 $694, 250 Liabilities and stock Holder's Equity 11 Common stock (2) Retained Earnings (3) Long term liabilities (Mortagage) (4) Current liabilities - refer note 3 Total liabilities (B) $80,000 $500,000 $ 86,450 $ 27,800 1 $694,250

Note 1. Current Assets Cash Debt investments Account Receivables Notes Receivables Supplies $ 1,850 $ 4700 $ 21,400 $ 5,400 $ 1,400 $53,750 Total current Assets Note4 : Long tem lovestments Investments in stock $71,600 Note a: Property, plant and Equipment i Land Lland improvements less: Accumulated depreciation $ 195,800 195,800 $ 45,900 $ 613,200) $32700 ab $228,500 ü) Building less: Acumulated deprecatron $ 262,000 $(33,600) $228,400 ii) Equipments with less. Accumulaled depreciation $83,800 $ (18,900) $ 64,900 Note 3: Current liabilities | Accounts payable Interest payable Income tax payable s $ 9,600 $ 3,100 $ 15,100 $27,800