Question

Problem 1 Listed here are items taken from the balance sheet of Medical Electronics, Inc. for the year ended December 31, 2018. Prepare a properly classified and labeled balance sheet statement using the items listed below. See textbook, pages 29 – 31 and 46 - 47.

Accumulated depreciation............................. $155,000

Retained earnings.................................... 142,000

Cash................................................. 6,000

Bonds payable........................................ 152,000

Accounts receivable.................................. 95,000

Plant and equipment—original cost.................... 345,000

Accruals……………………………………………………. 30,000

Accounts payable..................................... 15,000

Allowance for bad debts.............................. 5,000

Common stock, $1 par, 50,000 shares outstanding…. 50,000

Inventory............................................ 135,000

Preferred stock, $6 par, 1,000 shares outstanding ... 6,000

Marketable securities................................ 1,000

Investments.......................................... 3,000

Notes payable........................................ 20,000

Capital paid in excess of par (common stock) ......... 10,000

Answer 1

Classified Balance Sheet:
Assets:
Current Assets:	Total	Amount $
Cash	6000
Accounts Receivable	95000
Less:Allowance for bad debts	-5000
Net Accounts Receivable	90000
Inventory	135000
Marketable securities	1000
Current Assets		232000
Investments		3000
Fixed Assets:
Plant & Equipment-Original Cost	345000
Less:Accumulated Depreciation	-155000
Net Fixed Assets		190000
Total Assets		425000
Liabilities and Shareholders Equity:	Total	Amount $
Current Liabilities:
Accruals	30000
Accounts Payable	15000
Current Liabilities		45000
Long term Liabilities:
Bonds payable	152000
Notes Payable	20000
Long term Liabilities		172000
Shareholder's Equity:
Common Stock, $1 par, 50000 share O/s	50000
Paid in excess of Par-CS	10000
Common Stock Capital	60000
Preferred Stock, $6 par, 1000 shares O/s	6000
Retained Earnings	142000
Shareholder's Equity		208000
Total Liabilities and Shareholder's Equity		425000