Question

8. Javelina Publications balance sheet accounts as of December 31, 2019 are listed below. Prepare a properly classified balance sheet as of December 31, 2019 Land Sinking fund for bond retirement Discount on bonds payable Equipment Preferred Stock, $100 par Accumulated depreciation, buildings Investment in bonds held to maturity Accrued Wages Additional paid in capital, common Buildings Bond Payable (due 2025) Office supplies Retained earnings Inventory Account receivable Account payable Prepaid insurance Common Stock, $10 par Allowance for doubtful accounts Interest payable Cash Treasury stock fat cost) Dividends payable Additional nail in ranital referred 70,500 8,400 8,900 24,000 5,000 5,500 24,500 3,950 3,500 117,500 113,000 1,750 17,400 18,900 17,650 15,650 1,900 106,750 2.250 1,500 14,500 1.150 14,750 7 150 e 2

Answer 1

Answer

Jevelina Publications

   Balance sheet as on 31st December, 2019

Particulars	$	$
Assets
Current assets:
Cash	14,500
Inventory	18,900
Prepaid insurance	1,900
Account receivables	17,650
Less allowances for doubtful accounts	(2,250)
Net account receivables	15,400
Office supplies	1,750
Current assets		52,450
Non current assets:
Sinking fund for bond retirement	8,400
Land	70,500
Equipment	24,000
Less accumulated depreciation	(4,250)
Net equipment	19,750
Building	117,500
Less accumulated depreciation	(5,500)
Net building	112,000
Investment in stock held to mature	24,500
Total non current assets		235,150
Total Assets		287,600
Liabilities
Current liabilities:
Account payable	15,650
Income tax payable	6,000
Dividend payable	14,750
Interest payable	1,500
Accrued wages	3,950
Total current liabilities		41,850
Long term liabilities:
Bond payable	113,000
Less discount on bond payable	(8,900)
Net bond payable	104,100
Note payable	8,000
Total long term liabilities		112,100
Shareholders equity:
Common stock	106,750
Additional paid in capital , common stock	3,500
Preferred stock	5,000
Additional paid in capital, preferred stock	2,150
Retained earnings	17,400
Treasury stock	(1,150)
Total shareholders equity		133,650
Total liabilities and shareholders equity		287,600

Accumulated depreciation, allowances for doubtful debt and discount on bond are contra accounts.

Treasury stock is deducted from shareholders equity.

Additional paid in capital are shareholders equity item.

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