Question

The following items are taken from the financial statements of Sunland Company at December 31, 2022 $196,500 Land Accounts receivable Supplies Cash Equipment Buildings Land improvements Notes receivable (due in 2023) Accumulated depreciation-Iand improvements Common stock Retained earnings (December 31, 2022) Accumulated depreciation-buildings Accounts payable Mortgage payable Accumulated depreciation-equipment Interest payable Income taxes payable Patents Investments in stock (long-term) Debt investments (short-term) 22,100 10,200 12.000 82,000 261,200 46,350 5,300 13,300 73,500 511,000 33,000 9.900 80,650 18,700 3,900 15.100 46,600 72,800 4,000 Prepare a classified balance sheet. Assume that $10,200 of the mortgage payable will be paid in 2023. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings, Equipment and Land Improvements.)

Answer 1

Balance Sheet
Assets
current assets
cash	12000
Accounts receivables	22100
supplies	10200
debt investment (short term)	4000
notes receivables	5300
total of current assets		53600
Investments:
Investments in stock long term		72800
Property Plant and equipments		521050
Land	196500
building net of accumulated depreciation	228200
equipment net of accumulated depreciation	63300
land improvement net of accumulated depreciation	33050
Intangibles:
patents		46600
total of assets		694050
Liabilities and shareholders equity
Current liabilities
Accounts payable	9900
Interest payable	3900
income tax payable	15100
mortgage payable-short term	10200
total of current liabilities		39100
mortgage payable		70450
total of liabilities		109550
shareholders equity
common stock	73500
retained earnings	511000
total of shareholders equity		584500
total of liabilities and shareholders equity		694050