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Prepare a Balance Sheet from the following information for the year ended Decemb

ID: 2422760 • Letter: P

Question

Prepare a Balance Sheet from the following information for the year ended December 31, 2014: Long term debt $          500,000 Cash $            61,000 Allowance for bad debts $            75,000 Wages Payable $            43,000 Accounts receivable $          425,000 Accumulated depreciation $          350,000 Inventories $          110,000 Gross Plant & Equipment $      1,140,000 Accounts Payable $            37,000 Prepaid rent $               8,000 Increase in (Unrestricted) Net Assets $          159,000 Beginning balance, temporarily restricted net assets $            70,000 Net assets released from temporary restriction $            22,000 Beginning balance, unrestricted net assets $          475,000 Ending balance, permanently restricted net assets $            35,000 Prepare a Balance Sheet from the following information for the year ended December 31, 2014: Long term debt $          500,000 Cash $            61,000 Allowance for bad debts $            75,000 Wages Payable $            43,000 Accounts receivable $          425,000 Accumulated depreciation $          350,000 Inventories $          110,000 Gross Plant & Equipment $      1,140,000 Accounts Payable $            37,000 Prepaid rent $               8,000 Increase in (Unrestricted) Net Assets $          159,000 Beginning balance, temporarily restricted net assets $            70,000 Net assets released from temporary restriction $            22,000 Beginning balance, unrestricted net assets $          475,000 Ending balance, permanently restricted net assets $            35,000

Explanation / Answer

Balance Sheet: Assets $ Liabilities $ Current Assets: Current Libilities: Cash         61,000 Accounts Payable            37,000 Accounts Receivable       425,000 Inventories       110,000 Wages Payable            43,000 Less: Allowance for Bad Debts       (75,000) Prepaid Rent           8,000 Fixed Assets: Non Current Libilities: Gross Block    1,140,000 Long term Debt          500,000 Less:Accumulated Depreciation     (350,000) Un Restricted Assets: Beginning       475,000 During the year Added       159,000 Capital (B/F)       1,456,000 Permanently Restricted Assets:         35,000 Tempararily Restricted Assets: Beginning         70,000 During the year Released       (22,000)    2,036,000       2,036,000