Question

Exercise 3-4 (Algo) Balance sheet preparation (LO3-2, 3-3] The following is a December 31, 2021, post-closing trial balance for the Jackson Corporation. Account Title Cash Accounts receivable Inventory Prepaid rent (for the next 8 months) Investment in equity securities (shorte term) Machinery Accumulated depreciation Patent (net) Accounts payable Salaries payable Income taxes payable Bonds payable (due in 10 years) Common stock Retained earnings Totals Debits Credits $ 51,000 45,000 86,000 27,000 21,000 200,000 $ 22,000 90,000 13,500 9,500 43,000 250,000 140,000 42,000 $520,000 $520,000 Required: Prepare a classified balance sheet for Jackson Corporation at December 31, 2021, by properly classifyi (Amounts to be deducted should be indicated by a minus sign.) JACKSON CORPORATION Balance Sheet At December 31, 2021

Answer 1

Jackson Corporation Balance Sheet As at December 31, 2021 2021 (in $) Assets Current Assets Cash Accounts receivable Inventory Prepaid expenses Short-term investments 51.000 45,000 86,000 27,000 21,000 2,30,000 Total current assets $ (in $) Fixed (Long-Term) Assets Property, plant, and equipment (Less accumulated depreciation) Intangible assets 2,00,000 (22,000) 90,000 2,68,000 Total fixed assets $ (in $) Other Assets Other Total Other Assets $ Total Assets $ 4,98,000 (in $) - Liabilities and Owner's Equity Current Liabilities Accounts payable Salaries payable Income taxes payable 13,500 9,500 43,000 66,000 Total current liabilities $ (in $) Long-Term Liabilities Long-term debt (Bonds) Other 2,50,000 2,50,000 Total long-term liabilities $ (in $) Owner's Equity Common Stock Retained earnings Other 1,40,000 42,000 Total owner's equity $ 1,82,000 Total Liabilities and Owner's Equity $ 4,98,000