Question

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 60,000 Accounts receivable 54,000 Inventories 95,000 Prepaid rent for the next 8 months 36,000 Marketable securities (short term) 30,000 Machinery 245,000 Accumulated depreciation—machinery $ 31,000 Patent (net of amortization) 99,000 Accounts payable 18,000 Wages payable 14,000 Taxes payable 52,000 Bonds payable (due in 10 years) 270,000 Common stock 180,000 Retained earnings 54,000 Totals $ 619,000 $ 619,000 Required: Prepare a classified balance sheet for Jackson Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Balance Sheet:
Assets:
Current assets:
Cash			60000
Accounts receivable			54000
Inventories			95000
Prepaid rent			36000
Marketable Investment			30000
Total Current liabilities				275000
Machinery			245000
Less: Accumulated Depreciation			31000	214000
Patents				99000
Total Assets				588000
Liabilities and Stockholder's equity:
Libilities
Current liabilities:
Accounts Payable			18000
Wages Payable			14000
Taxes payable			52000
Total current liabilities				84000
Long term Liabilities:
Bonds payable				270000
Total Liabilities:				354000
Stockholder's equity:
Common Stock capital			180000
Retained earnings			54000
Total Stockholder's equity				234000
Total Liabilities and Stockholder;s equity				588000