Question

2 The following is a December 31, 2021, post-closing trial balance for the Jackson Corporation. 2 points Account Title Cash Accounts receivable Inventory Prepaid rent (for the next 8 months) Investment in equity securities (short term) Machinery Accumulated depreciation Patent (net) Accounts payable Salaries payable Income taxes payable Bonds payable (due in 10 years) Common stock Retained earnings Totals Debits Credits $ 55,000 49,000 90,000 31,000 25,000 220,000 $ 26,000 94,000 15,500 11,500 47,000 220,000 180,000 64,000 $564,000 $564,000 Required: Prepare a classified balance sheet for Jackson Corporation at December 31, 2021, by properly classifying each of the accounts. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Particular	Amount	Amount
Assets
Current Assets
Cash	55000
Prepaid rent	31000
Account receivable	49000
Inventory	90000
Investment in equity securities	25000
Total current assets (A)		250000
Non Current asset
Property,Plant & Equipment
Machinery	220000
Less: Accumulated depreciation	-26000
Net Property,Plant & Equipment	194000
Intangible assets
Patents	94000
Total Non Current Assets (B)		288000
Total Assets		538000
Liabilities and shareholders equity
Currrent Liabilities
Account payable	15500
Salary Payable	11500
Income tax payable	47000
Total Current Liabilities (C)		74000
Non Current Liabilities
Bond payable	220000
Total of Non Current Liabilities(D)		220000
Total of Liabilities (C+D). (E)		294000
Shareholders equity
Common stock	180000
Reserves and surplus	64000
Total of share holders equity(F)		244000
Total of Liabilities and shareholders equity ( E+F)		538000