Question

The following items were taken from the financial statements of Bridgeport Company. (All amounts are in thousands.) Long-term debt Prepaid insurance Equipment Stock investments (long-term) Debt investments (short-term) Notes payable (due in 2020) Cash $900 Accumulated depreciation equipment $5,600 970 Accounts payable 1,200 11.100 Notes payable (due after 2020) 400 200 Common stock 11,470 3,700 Retained earnings 2.000 400 Accounts receivable 1,400 2,700 Inventory 1,900 Prepare a classified balance sheet in good form as of December 31, 2019. (Enter amounts in thousands. List Current Assets in order of liquidity.)

Answer 1

Bridgeport Company Balance sheet As on December 31, 2019 Assets Current assets: Cash Accounts Receivable Prepaid Insurance Debt investment (Short term ) Inventory Total current assets Property, plant and Equipment Stock Investment (long term) Equipment Less:Accumulated Depreciation Total Assets 2700 1400 970 3700 1900 10670 2001 11100 -5600 5500 16370

400 1600 400 Liabilities and Owner's Equity Current Liabilities: Accounts payable 1200 Notes payable (due in 2020) Total current liabilities Long term Liabilities: Notes payable (due after 2020) Long term debt Total long term liabilities Total Liabilities Owners Capital Common stock 11470 Retained earnings 2000 Total stockholders Equity Total Liabilities and Owner's Equity 1300 2900 13470 16370