Classified Balance Sheet The following balance sheet items, listed in alphabetic
ID: 2395496 • Letter: C
Question
Classified Balance Sheet
The following balance sheet items, listed in alphabetical order, are available from the records of Meegan Enterprises at December 31, 2017:
Required:
1. Prepare a classified balance sheet as of December 31, 2017.
2. Compute Meegan's current ratio. Round your answer to two decimal places.
3. On the basis of your answer to (2), does Meegan appear to be liquid?
Accounts payable $34,280 Interest payable $2,200 Accounts receivable 26,700 Land 250,000 Accumulated depreciation— Marketable securities 15,000 buildings 40,000 Merchandise inventory 112,900 Accumulated depreciation— Notes payable, due April 15, 2018 6,500 equipment 12,500 Office supplies 400 Bonds payable, due Paid-in capital in excess of December 31, 2023 257,000 par value 75,000 Buildings 150,000 Patents 52,000 Capital stock, $1 par value 200,000 Prepaid rent 3,600 Cash 60,790 Retained earnings 113,510 Equipment 84,500 Salaries payable 7,400 Income taxes payable 7,500 Meegan Enterprises Balance Sheet December 31, 2017 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Intangible assets Total assetsExplanation / Answer
Balance Sheet Assets: Current assets: Cash 60790 Accounts receivable 26700 marketable securities 15000 Merchandise Inventory 112900 office supplies 400 Prepaid rentt 3600 Total current assets 219390 Property plant and equipment Land 250000 Building 150000 Less: Accum Dep 40000 110000 equipment 84500 Less: Accum Dep 12500 72000 Total Property plant and equipment 432000 Intangible assets: Patents 52000 Total assets 703390 Liabilities and Stockholder's equity: Current liabilities: Accounts payable 34280 income tax payable 7500 Interest payabble 2200 Notes payable 6500 Salaries payable 7400 Total current liabilities 57880 Long term liabilities: Bonds payable 257000 Total liabilities 314880 Stockholder's equity: Common Stock 200000 Additional paid in capital 75000 Total contributed capital 275,000 Retained earnings 113510 Total Stockholder's equity 388510 Total liabilities and stockholder's equity 703390 Current ratio: Current assets 219390 Divide by: Current liabilities 57880 Current ratio: 3.79 Yes Meegan appear to be liquid.