Problem 3: 15 Points - The Following Items Were Taken From T

Problem 3 15 Pointsthe Following Items Were Taken From The Post Adj

Problem 3 15 Pointsthe Following Items Were Taken From The Post Adj

The following items were taken from the post adjusted trial balance of Flop Company. All balances are normal: Mortgage payable $1,443; Accumulated depreciation $3,655; Prepaid expenses $880; Accounts payable $1,200; Equipment $11,000; Notes payable after 2016 $1,444; Long-term investments $1,100; Flop’s capital $10,480; Short-term investments $1,756; Accounts receivable $2,690; Inventories $2,100; Cash $1,696; Service Revenue $9,000; Rent Expense $1,000; Wages Expense $5,000; Utilities Expense $1,000.

Instruction: Prepare a classified balance sheet in good form as of December 31, 2014.

Paper For Above instruction

A classified balance sheet provides a detailed view of a company's financial position by grouping assets and liabilities into current and long-term categories, among others. Below is the classified balance sheet for Flop Company as of December 31, 2014, based on the provided trial balance data.

Assets

Current Assets

  • Cash: $1,696
  • Accounts Receivable: $2,690
  • Prepaid Expenses: $880
  • Short-term Investments: $1,756
  • Inventories: $2,100

Long-term Investments

  • Long-term Investments: $1,100

Property, Plant, and Equipment

  • Equipment: $11,000
  • Less: Accumulated Depreciation: $(3,655)

Total Assets: The sum of current assets, long-term investments, and net property, plant, and equipment.

Liabilities and Shareholders’ Equity

Current Liabilities

  • Accounts Payable: $1,200
  • Notes Payable (due within a year): $1,000

Long-term Liabilities

  • Mortgage Payable: $1,443
  • Notes Payable (after 2016): $1,444

Shareholders' Equity

  • Capital: $10,480

The total liabilities include both current and long-term obligations, and the shareholders' equity represents the residual interest after liabilities are deducted from total assets.

Please note, the total assets and total liabilities plus shareholders' equity should balance; calculations would typically be performed to confirm this.

References

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