Question

Use this randomly arranged data to prepare a classified balance sheet for Imamani Corporation as of December 31, 20X5. Some of the accounts do not belong in the balance sheet, and 20% of the loan payable matures

Capital Stock	$                755,000
Patent	275,000
Accumulated depreciation (equipment)	(477,654)
Building	1,990,776
Land held for speculation	156,098
Dividends	50,000
Cash	182,345
Retained earnings	646,992
Accounts receivable	56,766
Accounts payable	78,011
Income tax expense	123,334
Prepaid insurance	3,883
Accumulated depreciation (building)	(988,777)
Loan payable	1,000,000
Equipment	887,885
Land	278,790
Interest payable	31,117
Inventories	121,008
Cash value of life insurance	25,000

Answer 1

Classified Balance Sheet:

Imamani Corporation
Classified Balance Sheet
December. 31, 20X5
Assets
Current Assets:
Cash		$182,345
Cash value of life insurance		$25,000
Accounts Receivable		$56,766
Inventories		$121,008
Prepaid Insurance		$3,883
Total Current Assets			$389,002
Property, plant and Equipment:
Land		$278,790
Land held for Speculation		$156,098
Equipment	$887,885
Less: Accumulated Depreciation - Equipment	($477,654)	$410,231
Buildings	$1,990,776
Less: Accumulated Depreciation - Buildings	($988,777)	$1,001,999
Total Property, plant and Equipment			$1,847,118
Intangible and other assets:
Patents		$275,000
Total Intangible and other assets			$275,000
Total Assets			$2,511,120
Total Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable	$78,011
Interest Payable	$31,117
Total Current Liabilities		$109,128
Long-term Liabilities:
Notes Payable	$1,000,000
Total Long-term Liabilities		$1,000,000
Total Liabilities			$1,109,128
Shareholders' Equity:
Capital Stock		$755,000
Retained Earnings		$646,992
Total Shareholders' Equity			$1,401,992
Total Liabilities and Shareholders' Equity			$2,511,120