o-7A. Preparation of Balance Sheet Dooley the following normal balances: aration
ID: 2407827 • Letter: O
Question
o-7A. Preparation of Balance Sheet Dooley the following normal balances: aration of Balance Sheet Dooley a uses straight-line depreciation and amortization. Company's December 31 post-closing trial balance contains 3 Accounts payable. Building .. $11,000 20,000 439,500 . 785,000 900,000 Retained earnings Accumulated depreciation- Equipment . Land . . .. Accounts receivable. Accumulated depreciation- Building. 75,000 180,000 834,500 22,500 135,000 6,000 . 120,000 Patent (net of amortization) .. . 206,000 600,000 Equipment . .. 1,500 Required Prepare a December 31 classified balance sheet for Dooley Company.Explanation / Answer
Dooley Company Balance Sheet as at December 31 Assets: $ $ Curent Assets: Cash 11,000 Accounts Receivable 22,500 Less: Allowance for doubtful Accounts -1,500 21,000 Inventory 2,06,000 Total current assets 2,38,000 Property, Plant & Equipment Building 4,39,500 Less: Accumulated depreciation -Building -1,35,000 3,04,500 Equipment 6,00,000 Less: Accumulated depreciation - Equipment -1,80,000 4,20,000 Land 8,34,500 Total Property, Plant & Equipment 15,59,000 Intangible Assets: Patent (Net of amortization) 1,20,000 Total Intangible Assets 1,20,000 Total Assets 19,17,000 Liabilities and Equity Liabilities: Current Liabilities: Accounts Payable 20,000 Wages Payable 6,000 Notes Payable (Short term) 1,31,000 Total Current Liabilities 1,57,000 Long-term liabilities: Long-term notes payable 7,85,000 Total Long term Liabilities 7,85,000 Total Liabilities 9,42,000 Shareholders Equity Common Stock 9,00,000 Retained Earnings 75,000 Total Equity 9,75,000 Total Liabilities and equity 19,17,000