Question

The following is the ending balances of accounts at June 30, 2018 for Excell Company.

Account Title	Debits				Credits
Cash	$	93,000
Short-term investments		75,000
Accounts receivable		290,000
Prepaid expenses		42,000
Land		85,000
Buildings		330,000
Accumulated depreciation—buildings				$	165,000
Equipment		270,000
Accumulated depreciation—equipment					125,000
Accounts payable					178,000
Accrued expenses					50,000
Notes payable					110,000
Mortgage payable					240,000
Common stock					150,000
Retained earnings					167,000
Totals	$	1,185,000		$	1,185,000

Additional information:

1. The short-term investments account includes $23,000 in U.S. treasury bills purchased in May. The bills mature in July.
2. The accounts receivable account consists of the following:

a.	Amounts owed by customers	$	232,000
b.	Allowance for uncollectible accounts—trade customers		(18,000	)
c.	Non trade note receivable (due in three years)		70,000
d.	Interest receivable on note (due in four months)		6,000
	Total	$	290,000

3. The notes payable account consists of two notes of $55,000 each. One note is due on September 30, 2018, and the other is due on November 30, 2019.
4. The mortgage payable is payable in semiannual installments of $4,800 each plus interest. The next payment is due on October 31, 2018. Interest has been properly accrued and is included in accrued expenses.
5. Eight hundred thousand shares of no par common stock are authorized, of which 300,000 shares have been issued and are outstanding.
6. The land account includes $55,000 representing the cost of the land on which the company's office building resides. The remaining $30,000 is the cost of land that the company is holding for investment purposes.

Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2018. (Amounts to be deducted should be indicated by a minus sign.)

EXCELL COMPANY Balance Sheet At June 30, 2018 0 0

Answer 1

Answer:

EXCELL COMPANY
Balance Sheet
At June 30, 2016
Assets
Current assets:
Cash and cash equivalents(93000+23000)	116000
Short-term investments(75000-23000)	52000
Accounts receivable, net of allowance for uncollectible accounts of $15,000	214000
Interest receivable .	6000
Prepaid expenses ....	42000
Total current assets …		430000
Investments:
Note receivable	70000
Land held for sale	30,000	100,000
Property, plant, and equipment:
Land	55,000
Buildings .	330,000
Equipment .	270,000
	655,000
Less: Accumulated depreciation .	-290000
Net property, plant, and equipment		365,000
Total assets ..		895,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable .....	178000
Accrued expenses	50000
Note payable	55000
Current maturities of long-term debt (4800*2)	9600
Total current liabilities		292600
Long-term liabilities:
Note payable	55000
Mortgage payable (240,000-9600)	230400
Total long-term liabilities		285400
Shareholders’ equity:
Common stock, no par value; 800,000 shares authorized; 300,000 shares issued and outstanding	150,000
Retained earnings .	167000
Total shareholders ’equity		317,000
Total liabilities and shareholders’ equity		895,000