Question

From the following data, prepare a classified balance sheet for Taylorsville Construction Company on December 31, 2017:

Accounts payable …………………………… $ 74,300 Supplies ………………………….. $ 4,250
Accounts receivable …………………. 113,500 Land ……………………………….. 90,000
Buildings …………………………… 512,000 Mortgage payable ………….. 423,400
Equity, 1/1/17 …………………………. 314,300 Net income for 2017 …….. 109,450
Cash ………………………………………. 153,600 Equity, 12/31/17 …………. ?
Distributions to owners during 2017 .. 48,100                                        

Answer 1

Balance Sheet of Taylorsville Construction Company as on 31st December , 2017

LIABILITIES	AMOUNT($)	ASSETS	AMOUNT($)
Equity, 1/1/17 $314,300		Land	90,000
Add : Net Income $109,450		Buildings	512,000
Less : Dividend ($48,100) $61,350	375,650	Accounts receivable	113,500
Accounts Payable	74,300	Inventory - Supplies	4,250
Mortgage Payable	423,400	Cash	153,600
TOTAL	873,350	TOTAL	873,350

NOTE : Dividend means amount distributed to owners. If Divident declare it reduce from the Retained Earnings ( In this case Net Income) from the Balance Sheet.