Question

Required information Comprehensive Problem 3 Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2018. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.) $ Accounts payable Accounts receivable Accumulated depreciation: office equipment Additional paid-in capital (common stock) Bonds payable (due December 31, 2021) Cash Common stock (1,800 shares, $10 par value) Cost of goods sold Deferred income taxes Depreciation expense: office equipment Dividends declared Income tax expense Insurance expense Land Merchandise inventory Notes payable (due December 31, 2019) Office equipment office supplies Office supplies expense Preferred stock (250 shares, $20 par value) Premium on bonds payable Prepaid rent Rent expense Retained earnings (January 2018) Salaries expense Sales Sales returns and allowances Sales taxes payable Treasury stock (200 common shares at cost) Utilities expense 12,750 2,600 12,000 13,000 22,500 19,200 18,000 100,575 5,750 2,750 5,000 8,190 900 39,500 17,500 2,500 41,000 900 520 5,000 1,750 1,800 6,100 21,050 88,095 226,000 2,500 3,200 2,250 4,120

The question is to prepare a balance sheet. I've put in what I thought was the correct information. But I am missing one section, need help.

Answer 1

Interest expense $1,910 on bonds and notes. Since, coupon rate isn't mentioned, separate interest expense for bonds and notes cannot be calculated.