Question

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash 47,000 Accounts receivable 41,000 Inventories 82,000 Prepaid rent for the next 8 months 23,000 Marketable securities (short term) 17,000 Machinery 180,000 Accumulated depreciation—machinery 18,000 Patent (net of amortization) 86,000 Accounts payable 11,500 Wages payable 7,500 Taxes payable 39,000 Bonds payable (due in 10 years) 210,000 Common stock 100,000 Retained earnings 90,000 Totals 476,000 476,000 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

Prepare classified balance sheet :

ASSETS		AMOUNT	LIABILITIES AND STOCKHOLDER'S EQUITY		AMOUNT
Current Assets			Current Liabilities
Cash	47000		Account payable	11500
Account receivable	41000		Wages payable	7500
Inventories	82000		Taxes payable	39000	58000
Prepaid rent	23000		Long term Liabilities
Marketable securities	17000	210000	Bonds payable		210000
Non current assets			Stockholder's equity
Machinery	180000		Common stock	100000
Less: Accumlated depreciation	(18000)		Retained earnings	90000	190000
Patent	86000	248000
Total		458000	Total		458000