Question

Problem 3-5 (Algo) Balance sheet preparation [LO3-2, 3-3) The following is the ending balances of accounts at June 30, 2021, for Excell Company, Credits $ Debits 99,000 81,000 296,000 48,000 91,000 336,000 $ 168,000 Account Title Cash Short-term investments Accounts receivable (net) Prepaid expenses (for the next 12 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Accounts payable Accrued liabilities Notes payable Mortgage payable Common stock Retained earnings Totals 273,000 128,000 181.000 53,000 116,000 270,000 180,000 128,000 $1,224,000 5 $1,224,000 Additional information: 1. The short-term investments account includes $26,000 in U.S. treasury bills purchased in May. The bills mature in July, 2021. 2. The accounts receivable account consists of the following: a. Amounts owed by customers b. Allowance for uncollectible accounts-trade customers c.Nontrade notes receivable (due in three years) d. Interest receivable on notes (due in four months) Total $ 238,000 (20,000) 73,000 5,000 $296,000

Answer 1

Excell Company
Balance Sheet
June 30, 2021
Assets
Current assets:
Cash and cash equivalents (99000 + 26000)	125000
Short-term investments (81000 - 26000)	55000
Accounts receivable, net of allowance for uncollectible accounts	218000
Interest receivable	5000
Prepaid expenses	48000
Total current assets		451000
Investments:
Note receivable	73000
Land held for sale	33000	106000
Property, plant, and equipment:
Land		58000
Buildings	336000
Less: Accumulated depreciation	-168000	168000
Equipment	273000
Less: Accumulated depreciation	-128000	145000
Net property, plant, and equipment		371000
Total assets		928000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	181000
Accrued liabilities	53000
Note payable	58000
Current maturities of long-term debt ($5400 x 2)	10800
Total current liabilities		302800
Long-term liabilities:
Note payable	58000
Mortgage payable ($270000 - $10800)	259200
Total long-term liabilities		317200
Total liabilities		620000
Shareholders' equity:
Common stock	180000
Retained earnings	128000
Total shareholders' equity		308000
Total liabilities and shareholders' equity		928000