Question

HELP! The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $27,000; accounts receivable, $22,000; inventory, $36,000; equipment (net), $91,000; accounts payable, $25,000; salaries payable, $10,500; interest payable, $6,500; notes payable (due in 18 months), $41,000; common stock, $72,000. Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $170,000. (Amounts to be deducted should be indicated by a minus sign.)

K AND J NURSERY, INC. Balance Sheet At December 31, 2021 Assets Current assets Total current assets Property, plant, and equipment Net property, plant, and equipment Total assets Liabilities and Shareholders' Equity Current liabilities Total current liabilities Long-term liabilities Total liabilities Shareholders' equity Total shareholders' equity Total liabilities and shareholders' equity

Answer 1

27,000 22,000 36,000 Balance sheet Assets Current Assets cash Accounts receivable Inventory Total current Assets Property, Plant Ç Equipment Equipment (-) Depreciation (170000-9000) (#9,000) Total Assets 85,000 170,000 91,000 176,000 Earuty 25,000 10,500 6500 42,000 Liabilities & shareholders Current liabitties accounts payable salaries payable Interest payable Total current liabilities long term liabilities Notes payable Total liabilities shareholders Equity common stock 72000 Retain Earnings 21000 Total Shareholders Garrity Total Gability shareholders Earity 41,000 83,000 93,000 176,000

Note: Calulation of retained Earnings Total Assets = Total Gability @ common stock Đ Retained earnings 176,000 83000 72000 ☺ retained earnings Retained Earnings = 176000 83000 € 72000 Retained Earnings = 21000

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