Question

The following is the ending balances of accounts at June 30, 2016, for Excell Company. Account Title Cash Short-term investments Accounts receivable Debits 113,000 95,000 310,000 62,000 105,000 350,000 Credits Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Accrued expenses Notes payable Mortgage payable Common stock Retained earnings 175,000 280,000 135,000 188,000 60,000 130,000 350,000 250,000 27,000 Totals 1,315,000 1,315,000 Additional information: 1. The short-term investments account includes $33,000 in U.S. treasury bills purchased in May. The bills mature in July 2. The accounts receivable account consists of the following: $246,000 (19,000) 80,000 3,000 a. Amounts owed by customers b. Allowance for uncollectible accounts-trade customers c. Nontrade note receivable (due in three years) d. Interest receivable on note (due in four months) $310,000 Total 3. The notes payable account consists of two notes of $65,000 each. One note is due on September 30, 2016, and the other is due on November 30, 2017. 4. The mortgage payable is payable in semiannual installments of $7,000 each plus interest. The next payment is due on October 31, 2016. 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 500,000 shares have been issued and are outstanding 6. The land account includes $65,000 representing the cost of the land on which the company's office building resides. The remaining $40,000 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, 2016. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Excell Company Balance Sheet For the Year Ended June 30, 2016 Assets Current assets: Cash Inventory Accounts receivable Less: Allowance for uncollectible accounts 113.000 246,000 19,000 227,000 Interest receivable on notes 3.000 62,000 Prepaid expense Total current assets 405,000 Investments: Short-term Trasury bills 33.000 Other short-term investments (95000-33000) Long-term Land 62,000 40,000 Total investments 135.000 Loan and Advances: Notes receivables long term Total loans and advances 80,000 80,000 Fixed assets: Buildings (65000+350000) Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment 415,000 -175.000 240,000 280,000 -135,000| 145,000 Total fixed assets 385,000 Total assets 1,005,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accried expenses Notes payable-short term Total current liabilities 188.000 60,000 65,000 313,000 Non-current liabilities: Notes payable-long term 65,000 Mortgate payable Total non-current liabilities 350,000 415,000 Shareholders' equity Common stock (500000 stock at par value $0.5 each) Retained earnings Total Shareholders' equity Total liabilities and shareholders' Equity 250,000 27,000 277,000 1,005,000 Explanation: The interest accrued on mortgage payable cannot be taken out from accrued expense and shown separetely as interest payable. Because the rate of interest on mortgage payable is not given.