Question

The following is a December 31, 2021, post-closing trial balance for the Jackson Corporation.
 

Account Title		Debits			Credits
Cash	$	49,000
Accounts receivable		43,000
Inventory		84,000
Prepaid rent (for the next 8 months)		25,000
Investment in equity securities (short term)		19,000
Machinery		190,000
Accumulated depreciation				$	20,000
Patent (net)		88,000
Accounts payable					12,500
Salaries payable					8,500
Income taxes payable					41,000
Bonds payable (due in 10 years)					230,000
Common stock					120,000
Retained earnings					66,000
Totals	$	498,000		$	498,000

Required:
Prepare a classified balance sheet for Jackson Corporation at December 31, 2021, by properly classifying each of the accounts. (Amounts to be deducted should be indicated by a minus sign.)
 

Answer 1

Solution 1:

Jackson Corporation
Balance Sheet - December 31, 2021
Particulars		Amount
Asset:
Current Assets:
Cash		$49,000.00
Accounts Receivables		$43,000.00
Inventories		$84,000.00
Prepaid Rent		$25,000.00
Investments:
Marketable Securities		$19,000.00
Property Plant and Equipment:
Machinery	$190,000.00
Accumulated Depreciation - Machinery	$20,000.00	$170,000.00
Intangible Assets:
Patents		$88,000.00
Total Assets		$478,000.00
Liabilities & Stockholder's Equity:
Current Liabilities:
Accounts payable		$12,500.00
Wages Payable		$8,500.00
Taxes Payable		$41,000.00
Long term Liabilities:
Bonds Payable		$230,000.00
Stockholder's Equity
Common Stock		$120,000.00
Retained earnings		$66,000.00
Total liabilties and stockholder's Equity		$478,000.00