Question

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation.

Account Title		Debits			Credits
Cash	$	51,000
Accounts receivable		45,000
Inventories		86,000
Prepaid rent for the next 8 months		27,000
Marketable securities (short term)		21,000
Machinery		200,000
Accumulated depreciation—machinery				$	22,000
Patent (net of amortization)		90,000
Accounts payable					13,500
Wages payable					9,500
Taxes payable					43,000
Bonds payable (due in 10 years)					250,000
Common stock					140,000
Retained earnings					42,000
Totals	$	520,000		$	520,000

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			51000
Accounts receivable			45000
Inventories			86000
Prepaid rent			27000
marketable Securities			21000
Total Current assets				230000
Property plant and Equipment:
machinery			200000
Less: Accumulated dep			-22000	178000
Intangible Assets:
Patents				90000
Total Assets				498000
Liabilities:
Current liabilities:
Accounts payable			13500
Wages payable			9500
Taxes payable			43000
Total current liabilities				66000
Long term liabilities:
Bonds payable				250000
Total Liabilities				316000
Stockholder's equity:
Common Stock			140000
Retained earnings			42000
Total Stockholder's equity				182000
Total Liabilities and Stockholder's equity				498000