Question

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Exercise 4-16 Preparing a classified balance sheet for a merchandiser LO P4 Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable Buildings Prepaid rent Merchandise inventory Accounts payable Prepaid insurance Accounts receivable Common stock 6,200 58,200 7,200 14,400 12,000 3,400 6,000 12,000 Retained earnings Notes payable (due in 9 years) office supplies Land Accumulated depreciation-Building Mortgages payable (due in 5 years) Cash $ 52,000 34,000 2,400 26,000 5,400 16,000 20,000 Required: Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) ADAMS CO. Balance Sheet December 31 Assets Current assets $ Cash Accounts receivable 20.000 6.000

Answer 1

Answer
Balance Sheet
December 31-----
Assets:
Particulars	Amounts	Amounts
Current assets:
Cash	$   20,000
Accounts receivable	$     6,000
Merchandise Inventory	$   14,400
Office supplies	$     2,400
Prepaid insurance	$     3,400
Prepaid rent	$     7,200
Total current assets		$   53,400
Plant assets:
Land	$   26,000
Buildings	$   58,200
Accumulated Depreciation - Building	$   -5,400
Total plant assets		$   78,800
Total Assets		$1,32,200
Liabilities & Equity:
Current liabilities:
Accounts payable	$   12,000
Salaries payable	$     6,200
Total current liabilities		$   18,200
Long-term liabilities:
Notes payable	$   34,000
Mortgages payable	$   16,000
Total long-term liabilities		$   50,000
Total liabilities		$   68,200
Equity:
Common Stock	$   12,000
Retained Earnings	$   52,000
Total equity		$   64,000
Total liabilities and equity		$1,32,200