Question

The following items are taken from the financial statements of Wildhorse Co. at December 31, 2022.

Land			$196,400
Accounts receivable			22,700
Supplies			9,500
Cash			11,850
Equipment			82,800
Buildings			262,200
Land improvements			46,200
Notes receivable (due in 2023)			5,700
Accumulated depreciation—land improvements			13,000
Common stock			74,500
Retained earnings (December 31, 2022)			513,000
Accumulated depreciation—buildings			32,700
Accounts payable			9,700
Mortgage payable			80,250
Accumulated depreciation—equipment			19,000
Interest payable			3,900
Income taxes payable			14,700
Patents			46,900
Investments in stock (long-term)			72,100
Debt investments (short-term)			4,400

Prepare a classified balance sheet. Assume that $10,000 of the mortgage payable will be paid in 2023.

Answer 1

Wildhorse Co. Balance Sheet as at December 31, 2022
Assets
Current Assets:
Cash		11,850
Account receivables,,		22,700
Supplies		9,500
Debt Investments (Shoet term)		4,400
Notes Receivables		5,700
Total Current Assets			54,150
Property, Plant and Equipment:
Land		196,400
Land Improvement	46,200
Less: Accumulated Depreciation- Land Improvement	(13,000)	33,200
Equipment	82,800
Less: Accumulated Depreciation - Equipment	(19,200)	63,800
Building	262,200
Less: Accumulated Depreciation - Building	(32,700)	229,500
Total Property, Plant and Equipment			522,900
Intangible Assets:
Patent			46,900
Investments:
Investment in stock (long-term)			72,100
Total Assets			696,050
Liabilities and Shareholder's Equity
Current Liabilities:
Account Payable		9,700
Current Portion of Mortgage Payable		10,000
Interest Payable		3,900
Income Tax Payable		14,700
Total Current Liabilities			38,300
Long-term Liabilities:
Mortgage Payable (80,250-10,000)			70,250
Total Liabilities			108,550
Shareholder's Equity:
Common Stock		74,500
Retained Earnings		513,000
Total Shareholder's Equity			587,500
Total Liabilities and Shareholder's Equity			696,050

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