Question

The following items are taken from the financial statements of Carmen Co. at December 31, 2022.

Land			$195,600
Accounts receivable			21,700
Supplies			9,200
Cash			11,840
Equipment			82,400
Buildings			261,200
Land improvements			45,780
Notes receivable (due in 2023)			5,300
Accumulated depreciation—land improvements			12,600
Common stock			75,000
Retained earnings (December 31, 2022)			495,000
Accumulated depreciation—buildings			32,600
Accounts payable			9,500
Mortgage payable			93,600
Accumulated depreciation—equipment			18,720
Interest payable			3,600
Income taxes payable			14,700
Patents			46,700
Investments in stock (long-term)			71,500
Debt investments (short-term)			4,100

Prepare a classified balance sheet. Assume that $9,100 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

current assets
cash	11,840
account receivable	21,700
supplies	9,200
notes receivable	5,300
debt investment (short)	4,100
Total current assets		52,140
Long term investment
Investment in stock		71,500
Property , Plant and equipment
Land	1,95,600
Building	2,61,200
Less: accumulated depreciation	-32,600
equipment	82,400
Less: accumulated depreciation	-18,720
land improvements	45,780
Less: accumulated depreciation	-12,600	5,21,060
Intangible assets
Patent		46,700
TOTAL ASSETS			6,91,400
liabilities and stockholder's equity
current liabilities
account payable	9,500
mortgage payable (DUE IN 2023)	9,100
interest payable	3,600
income tax payable	14,700
Total Current liabilities		36,900
Long term liabilities
Mortgage payable	84,500
Total long term liabilities		84,500
Total Liabilities			1,21,400
stock holder's equity
common stock	75,000
retained earnings	4,95,000
Total stockholder's equity		5,70,000
Total liabilities and stockholder's equity			6,91,400