Prepare a classified Balance Sheet, dated 12-31-14, for these 3 situations: Situ
ID: 2486457 • Letter: P
Question
Prepare a classified Balance Sheet, dated 12-31-14, for these 3 situations:
Situation 1
12-31-14 Assets:
Cash ………………………………. 83,000
Accounts Rec. ………………...…..…… 274,000
Inventory ………………...………………. 225,000
Equipment, Net of Accum. Depr. …….. 601,000
12-31-14 Liabilities:
Accounts Pay. ………………...…..…… 5,000
Short-Term Notes Payable …...…..…… 95,200
Long-Term Notes Payable …...…..… … 271,000
12-31-14 Equity:
Business is named Happy Productions and is owned solely by Harry Happy.
(You will have to determine the equity amount)
Situation 2
Business is named Aztec Partners and is owned by Judy Smith and Al Topp
Assets and Liabs. are the same as situation 1.
Equity-
Capital as of 1-1-14:
Judy ………………………………………. 200,000
Al, ……………………………………….. 325,000
Capital Contributed in 2014:
Judy …………………………………….. -
Al ………………………………………… -
Drawings ,2014:
Judy ……………………………………. 71,000
Al ……………………………………….. 90,000
Share of Profits , every year
Judy …………………………………… 0.4
Al …………………………………….. 0.6
Situation 3
Business is a corporation named Aztec, Inc.
Assets and Liabs. are the same as situation 1.
Equity-
Paid in Capital(Common Stock) as of 12-31-14 is ………………. 425,000
Explanation / Answer
Incomplete record for situation 2 & 3
Situation 1 Assets Current Assets Cash 83000 Accounts receivables 274000 Inventory 225000 Total current Assets 582000 Non Current Assets Equipment (Net) 601000 Total Assets 1183000 Liabilities Current Liabilities Accounts payable 5000 Short term notes payable 95200 Total Current Liabilities 100200 Non Current Liabilities Long Trem Notes Payable 271000 Total Liabilities 371200 Equity ( Balancing Figure) 811800 Total Liabilities & equity 1183000