Question

Question 3 20 pts . The following is the ending balances of accounts at June 30, 2019 for Excel Company. Account Title Debits Credits Cash $ 99,000 Short-term investments 81,000 Accounts receivable 296,000 Prepaid expenses 48,000 Land 91,000 Buildings 336,000 Accumulated depreciation-buildings $ 168,000 Equipment 273,000

Answer 1

ASSETS	Amount ($)	Amount ($)
Current Assets:-
Cash and cash equivalents	125,000
Short-term investments	55,000
Accounts receivable, net of allowance for uncollectible accounts of $20,000	218,000
Interest receivable	5,000
Prepaid expenses	48,000
Total Current Assets		451,000
Investments:-
Notes receivable (nontrade)	73,000
Land held for sale	33,000
Total Investments		106,000
Property, plant and equipment assets:
Land	58,000
Buildings	336,000
Equipment	273,000
Less: Accumulated depreciation	(296,000) ($168,000+$128,000)
Total Property, plant and equipment		371,000
Total Assets		928,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	181,000
Accrued expenses	53,000
Notes payable	58,000
Current maturities of long-term debt	10,400
Total Current Liabilities		302,400
Long-term Liabilities:-
Notes Payable	58,000
Mortgage payable	259,600
Total Long-term Liabilities		317,600
Stockholders' Equity:-
Common Stock, no par value	180,000
Retained Earnings	128,000
Total stockholders' Equity		308,000
Total Liabilities and Stockholders' Equity		928,000

Working Notes:-

1-Calculate cash and cash equivalents:-

Cash and cash equivalents= Cash as per trial balance +Amount of U.S. Treasury bill

=$99,000+$26,000

=$125,000

2- Calculate the amount of short term investments:-

Short-term investment= Short-term investment as per trial balance - Amount of U.S. Treasury bill

=$81,000-$26,000

=$55,000

3- Calculate the amount of notes receivable, net of allowance for uncollectible accounts:-

Notes receivable, net of allowance for uncollectible accounts= Amount owned by customers-Allowance for uncollectible accounts

=$238,000-$20,000

=$218,000

4-Calculate the amount of mortgage payable:-

Mortgage payable = Mortgage payable as per trial balance- Semiannual installment plus interest

=$270,000-$5,400+$5,000

=$259,600