Question

The following is the ending balances of accounts at June 30, 2021. for Excell Company Credits $ Debits 83,000 65,000 280,000 32,000 75,00 320,000 $ 160,000 Account Title Cash Short-term investments Accounts receivable (net) Prepaid expenses (for the next 12 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Accounts payable Accrued liabilities Notes payable Mortgage payable Common stock Retained earnings Totals 265,000 120,000 173,000 45,000 100,000 250,000 100,000 172,000 $1,120,000 $1,120,000 Additional information: 1. The short term investments account includes $18,000 in US treasury bills purchased in May. 2. The accounts receivable account consists of the following: a. Amounts owed by customers b. Allowance for uncollectible accounts-trade customers c. Nontrade note receivable duel in three years d. Interest receivable enote (du months Total $225,000 (15, 000) 65,000 5,000 $280,000

Answer 1

Preparation of Classified Balance sheet for Excell Company at June 30, 2021

Excell Company Balance Sheet at June 30, 2021
Particulars	Amount	Amount
Assets
Current Assets
Cash ($83,000 + $18,000)		$101,000
Short Term Investments ($65,000 - $18,000)		$47,000
Accounts Receivable, Net ($225,000 -$15,000)		$210,000
Interest Receivable		$5,000
Prepaid Expenses		$32,000
Total Current Assets		$395,000
Investments
Notes Receivable	$65,000
Land held for Investments	$25,000	$90,000
Property, Plant and Equipment
Land ($75,000- $25,000)	$50,000
Buildings	$320,000
Equipment	$265,000
	$635,000
Accumulated Depreciation ($160,000 + $120,000)	($280,000)
Net Propert Plant and Equipment		$355,000
Total Assets		$840,000
Liabilities and Shareholder's Equity
Current Liabilities
Accounts Payable		$173,000
Accrued Liabilities		$45,000
Notes Payable (Current Year - 2021)		$50,000
Current Maturities fo Long term debt ($5,000 * 2)		$10,000
Total Current Libailities		$278,000
Long Term Liabilities
Notes payable (Next Year - 2022)	$50,000
Mortgage Payable ($250,000 - $10,000)	$240,000
Total Long term Liabilities		$290,000
Total Liabilities		$568,000
ShareHolders'Equity
Common stock, no par value, 500,000 shares authorized, 200,000 shares issued and outstanding	$100,000
Retained earnings	$172,000
Total Shareholders Equity		$272,000
Total Liabilities and Shareholder's Equity		$840,000