Question

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation.

Account Title		Debits			Credits
Cash	$	50,000
Accounts receivable		44,000
Inventories		85,000
Prepaid rent for the next 8 months		26,000
Marketable securities (short term)		20,000
Machinery		195,000
Accumulated depreciation—machinery				$	21,000
Patent (net of amortization)		89,000
Accounts payable					13,000
Wages payable					9,000
Taxes payable					42,000
Bonds payable (due in 10 years)					240,000
Common stock					130,000
Retained earnings					54,000
Totals	$	509,000		$	509,000

Required:
Prepare a classified balance sheet for Jackson Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Balance sheet

Jackson Corporation

As at December 31, 2018

Assets	$	Liabilities and Stockholders' equity	$
Current assets		Current liabilities
Cash	50,000	Accounts payable	13,000
Accounts receivable	44,000	Wages payable	9,000
Inventories	85,000	Taxes payable	42,000
Prepaid rent	26,000	Total current liabilities	64,000
Marketable securities	20,000	Long term liabilities
Total current assets	225,000	Bonds payable	240,000
Property, plant and equipment		Stockholders' equity
Machinery	195,000	Common stock	130,000
Accumulated depreciation- Machinery	- 21,000	Retained earnings	54,000
Patents	89,000	Total Stockholders' equity	184,000
Net Property, plant and equipment	263,000
Total assets	488,000	Total liabilities and stockholders' equity	488,000

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